Kotak Mahindra Bank Ltd is all set to announce its first-quarter (Q1) earnings on Monday, i.e. 22 July. Brokerage houses expect the bank to report healthy growth in profit and net interest income, with stable asset quality in the June quarter.
Kotak Mahindra Bank stock fell over 3% in intra-day trade to Rs 1,448.80 on Monday ahead of the results announcement. The stock has risen over 12% in the last one year.
Prabhudas Lilladher expects Kotak Mahindra Bank to post 35% growth in profit and 22% in net interest income for the June quarter compared with a year ago.
“Most metrics like business growth, Casa (current and savings account), NIMs (net interest margins) and earnings will be strong, while we also don’t see major hiccups in asset quality with credit cost close to 50-55 basis points,” the brokerage house said.
It also expects gross non-performing asset (NPA) ratio at around 2.16% in the June quarter against 2.14% in the preceding March quarter and 2.17% in the year-ago quarter. The bank has so far maintained its NPA ratio at 2% levels.
Motilal Oswal expects Kotak Mahindra Bank to report loan growth of around 22% year-on-year and deposit growth of around 19% in the June quarter. It expects margins to remain at around 4.4% during the quarter against 4.48% in the previous quarter and 4.3% in the year-ago quarter.
CASA retention would be a key driver of NII (net interest income) and NIM, the brokerage house said, adding with strong digital initiatives and fast-paced customer acquisition, fee income would be a key growth driver for the bank.
Motilal Oswal said it expects Kotak Mahindra Bank to post 33% year-on-year growth in profit, as other income might grow around 8% in the June quarter, driven mostly by healthy fee traction.
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