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Dolat Capital Report
Kotak Mahindra Bank Ltd. reported a strong quarter with continued traction in margin (up 16 basis points QoQ to 4.78%), healthy growth in core fee income (up 13% QoQ) aiding pre-provision operating profit/assets at 3%, and robust loan growth at 7% QoQ.
Write-back of Rs 4.5 billion Covid-19 provisions and negative net slippages led to provisions reversal during the quarter, resulting in profitability beat.
Earnings performance for the group’s subsidiaries was robust, contributing 29% to consolidated profit after tax.
Asset quality metrics remained upbeat with gross slippages at ~1.1% (annualised), ~200 basis points sequential rise in provision coverage ratio to 73%, decline in restructured book, and moderation in special mention account book.
Kotak Mahindra Bank further reversed Rs 4.5 billion (Rs 2.8 billion in Q3) of the Covid related provisions during the quarter.
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