Kotak Mahindra Bank Q3 Review - Revenue, PPOP Growth Steady; Pro-Forma GNPA Increases: Motilal Oswal
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Motilal Oswal Report
Kotak Mahindra Bank Ltd. reported an in-line Q3 FY21, with profit after tax of Rs 18.5 billion (up 16% YoY), led by a pickup in loan growth, which supported net interest income, even as margin stood flat QoQ (approximately 4.5%).
On the asset quality front, slippages stood lower (aided by Supreme Court order) driving sequential improvement in asset quality ratios, while provision coverage ratio rose to ~78%.
However, pro-forma gross non-performing asset/net non-performing asset ratio increased to 3.27%/1.24% (versus 2.7%/0.74% in Q2 FY21).
The bank carries Covid-19-related provisions of Rs 12.8 billion (0.6% of advances), while it carried out fresh restructuring worth 0.28% of advances.
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