Kotak Mahindra Bank - Slippages, Credit Cost Elevated; Structurally Ready For Growth: ICICI Securities
A motorcyclist wearing a protective mask rides past a Kotak Mahindra Bank Ltd. branch on a near-empty street in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Kotak Mahindra Bank - Slippages, Credit Cost Elevated; Structurally Ready For Growth: ICICI Securities

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ICICI Securities Report

Kotak Mahindra Bank Ltd.’s Q4 FY21 earnings disconcerted on two counts:

  1. Higher provisioning at more than 200 basis points (versus 120 basis points in nine-months FY21) and slippages at 4% in H2 FY21 (2.5% for FY21), quite uncharacteristic of the bank. However, on a positive note, gross non-performing assets settled near Q3 FY21 proforma levels, restructuring was a mere 0.2%, and special mention account-II pool negligible at 5 basis points.

  2. On guided lines, loan growth sustained 4.5% quarter-on-quarter momentum, yet lags its private sector peers with mere 2% year-on-year growth, due to cautious stance on unsecured lending and pricing focus in corporate banking.

Click on the attachment to read the full report:

ICICI Securities Kotak Bank Q4FY21 Results Update.pdf

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