Kotak Mahindra Bank posts good performance overallKOTAKBANK - 1813 Change: 33.30 (1.87 %)
News: KMB posted good set of numbers with NII growing 12% YoY, 7.8% QoQ to | 4334 crore, which was aided by 17 bps sequential improvement in NIMs to 4.6%. Opex increased 10% QoQ and thus C/I was up at 52.6%. Overall credit cost was negative at -Rs.132 crore as the bank reversed Covid-provisions worth Rs.279 crore. Net profit was up 15% YoY and 5% QoQ to Rs.2131 crore. Overall loan growth for the quarter was healthy at 18.1% YoY and 7.6% QoQ to Rs.2.5 lakh crore. Deposits were up 15% YoY and 4.7% QoQ to |3 lakh crore, CASA ratio for the bank now stands at a healthy 59.9% of overall deposits. Asset quality performance was impressive as GNPA and NNPA declined by 48 bps and 29 bps QoQ to 2.71% and 0.79%, respectively.
Views: KMB reported strong credit growth, with growth now outpacing the peers, which was backed by retail growth, but higher Opex impacted pre-provisioning profit. Mostly all KMB’s subsidiary reported good profitability and hence on consolidated basis PAT grew by 31% YoY. Slippages were down on sequential basis with recoveries and upgrades proving an additional boost, we believe that given this momentum continues the GNPA could further decline. Hence, we remain positive on the stock.