Motilal Oswal: Kotak Mahindra Bank Q2 Review - Asset Quality Remains Resilient;  Earnings Outlook Improving
People standing in queue outside Kotak Mahindra Bank. (Photo: BloombergQuint) 

Motilal Oswal: Kotak Mahindra Bank Q2 Review - Asset Quality Remains Resilient; Earnings Outlook Improving

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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).

Click on the attachment to read the full report:

Motilal Oswal Kotak Mahindra Bank Q2FY21 Result Update.pdf

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