Dolat Capital: Kotak Mahindra Bank Q2 Review - Strong Profitability Despite Loan De-Growth
A security guard stands inside a Kotak Mahindra Bank ATM in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg News)

Dolat Capital: Kotak Mahindra Bank Q2 Review - Strong Profitability Despite Loan De-Growth

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Kotak Mahindra Bank Ltd. reported net interest income and pro-provision operating profit growth of 17% and 31% YoY respectively despite advances de-growth of 4% YoY, led by improvement in cost of funds, higher fee lines, elevated treasury gains and lower provisions.

Including standstill non-performing assets, slippages would have been approximately 1.1% and gross NPA would be stable QoQ at 2.7%.

Provision coverage ratio increased by approximately 700 basis points QoQ to 76% and stood at approximately 72% on a pro forma basis, implying healthy recoveries and low write-offs during the quarter.

Click on the attachment to read the full report:

Dolat Capital Kotak Mahindra Bank Q2FY21 Result Update.pdf

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