Kotak Mahindra Bank Q4 Review - Upgrade To Buy Post Recent Correction On RBI’s Supervisory Action: Nirmal Bang

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Kotak Mahindra Bank Ltd.'s Q4 FY24 profit after tax of Rs 41.3 billion was at a variation of 17.6%/24.2% versus our estimate/consensus estimates. Profit after tax grew by 18.2% YoY/37.5% QoQ on the back of 17.6% YoY loan growth, improvement in net interest margin and asset quality and the impact of three one-off items:Writeback of Rs 1.57 billion AIF provisions in Q4 FY24,Interest on IT refunds at Rs 1.4 billion andTax credits of Rs 2 billion. While deposits surprised positively, growing at 9.9% QoQ vis-a-vis top three peer banks, a good part of it came from TD growing by 14.5% QoQ and CA at 9.3% QoQ. Savings Accounts remain a challenge, with the same growing at a modest 2.2% QoQ. With respect to the RBI’s supervisory action, the management sees Rs3-4.5 billion impact at the profit before tax level based on three factors:Tech spends continuing at 10% of opex as it looks to ramp up its tech platforms as per the regulator’s expectations and some expenses continuing on the existing Credit Card customer base,Business lost in 811 and Credit Card verticals andSavings in customer acquisition costs in these two segments..In order to mitigate the impact of the RBI’s action, the bank is increasing its focus on cross-selling and acquiring customers through physical network, for which it will also utilize 811 vertical’s on-ground salesforce. In our view, this step has the potential to bring in better ticket sizes of liability and asset products from the existing metro/urban customer base (as against better volume and low-value products coming through the digital route)..Click on the attachment to read the full report:.Kotak Mahindra Bank Q4 Results Review - Strong Quarter; One-Off Gains Boost Earnings Further: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Kotak Mahindra Bank Q4 Review - Upgrade To Buy Post Recent Correction On RBI’s Supervisory Action: Nirmal Bang

Performance supported by strong business growth and one-off line items

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Kotak Mahindra Bank Q4 Review - Upgrade To Buy Post Recent Correction On RBI’s Supervisory Action: Nirmal Bang

Performance supported by strong business growth and one-off line items

Choose a plan

Follow Us

DOWNLOAD THE APP