Motilal Oswal: Kotak Mahindra Bank’s Moratorium Book Plunges In Q1, Loan Book Declines Sharply
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Motilal Oswal Report
Kotak Mahindra Bank Ltd. reported a mixed quarter with weak earnings performance, affected by lower fee income, 32 basis point QoQ decline in margins and sharp sequential decline in loan growth.
On the asset quality front, slippages were elevated, driving 45 basis point QoQ increase in gross non-performing asset ratio while provision coverage remained broadly stable.
Moratorium 2.0 declined to 9.65% with 95% coming from moratorium 1.0. However, moratorium figures are not comparable due to a different computation methodology used across banks.
On the business front, loan book declined 7% QoQ, affected by the lockdown, and bank’s cautious approach in a weak macro environment. Savings account deposits’ growth was steady, driving further improvement in current account savings account mix to 56.7%.
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