Kotak Mahindra Bank Q2 Review - Strength Of Liability Franchise Put To Good Use: Motilal Oswal
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Motilal Oswal Report
Kotak Mahindra Bank Ltd. delivered an in-line operating performance though lower provisions resulted in standalone profit after tax coming in at Rs 20.32 billion (12% beat).
Consolidated profit after tax remained flat YoY while the securities, prime and life insurance businesses witnessed a strong earnings growth.
Loan book grew sharply by 8% QoQ (up 15% YoY) to Rs 2.35 trillion, led by a pickup across the secured and unsecured retail as well as corporate banking segments.
On the liability front, current account and savings account growth remained steady and took the CASA mix to 60.6% (40 basis points QoQ increase; highest in the industry).
Kotak Mahindra Bank did not utilise Covid-19 provisioning during the quarter and has total Covid-related provisions of Rs 12.8 billion (0.5% of loans).
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