Motilal Oswal: Kotak Mahindra Bank Q2 Review - Asset Quality Remains Resilient; Earnings Outlook Improving
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Motilal Oswal Report
Kotak Mahindra Bank Ltd.reported a strong quarter – with lower provisions and higher treasury income boosting earnings, even as core pre-provision operating profit grew 19% YoY.
The bank reported an uptick in fee income and margins too expanded 12 basis point QoQ, while loan growth stood flat.
On the asset quality front, slippages stood lower (partially aided by the Supreme Court order), driving sequential improvement in asset quality ratios, while provision coverage ratio increased sharply to 76%.
The bank carries total Covid-19 provisions of Rs 12.79 billion (0.6% of advances).
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