ECONOMY

Kotak Mahindra Bank Q4 Review – On Track Despite Some Hiccups: Dolat Capital

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Kotak Mahindra Bank Ltd. reported in line net interest income growth of 8% YoY, impacted by high slippages and few one-offs (previous quarter’s interest reversal, compound interest waiver of Rs 1.1 billion).

Operating profits benefitted from higher treasury gains and better fee lines, growing by 25% YoY.

Sequential loan growth of 4.5% YoY was driven by home loan (10% QoQ) and small and medium enterprise (6-7%), commercial vehicle (9%), and agri loans (9%).

Pro-forma slippages at 4% for Q4 FY21 and 2.5% for FY21 seemed higher than peers.

The bank’s higher cost of fund in previous cycle and associated asset side risks could be playing out in our view.

Click on the attachment to read the full report:

Dolat Capital Kotak Mahindra Bank Q4FY21 Result Update.pdf

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