Kotak Mahindra Bank - On Track Despite Some Hiccups: Dolat Capital
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Dolat Capital Report
Kotak Mahindra Bank Ltd. reported in line numbers with net interest income and pre-provision operating profit growing by 17% and 29% respectively. Sequential loan growth of 4.5% YoY surprised positively.
Pro-forma non-performing assets were higher sequentially by ~60 basis points to 3.27%, with pro-forma provision coverage ratio at ~61%. However, bank’s Covid-19 related provision buffers of Rs 12.8 billion remain unutilized thus far.
Pro forma slippages at ~Rs 19 billion for the quarter or 3.79% (annualized) had a disproportionate share of unsecured consumer retail loans, with 40% of incremental stress coming from this segment against its loan-book share of 6%.
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