Kotak Mahindra Bank Q4 Review - Elevated Provisioning, Weak NII Drive Earnings Miss: Motilal Oswal
Customers wearing protective masks approach a Kotak Mahindra Bank Ltd. branch on a near-empty street in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Kotak Mahindra Bank Q4 Review - Elevated Provisioning, Weak NII Drive Earnings Miss: Motilal Oswal

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Motilal Oswal Report

Kotak Mahindra Bank Ltd. reported a miss on our expectations as profit after tax stood at Rs 16.8 billion (14% below our estimate), affected by lower net interest income and higher provisions.

Loan book grew 4.5% quarter-on-quarter led by steady traction in home loans, commercial vehicle/construction equipment, and the agri business.

Current account and savings account growth remains steady, driving further improvement in the Current Account Saving Account mix to 60.4%.

Asset quality trends were broadly stable, with gross non-performing asset/net-non performing asset ratio at 3.25%/1.21% (versus 3.27%/1.25% on a pro forma basis in Q3 FY21).

Total slippages stood at Rs 54 billion (2.4% of loans) in FY21.

Click on the attachment to read the full report:

Motilal Oswal Kotak Mahindra Bank Q4FY21 Result Update.pdf

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