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News: Kotak Mahindra Bank reported healthy performance in Q3FY24. Advances growth came a tad lower at 15.7% to ₹ ~3.6 lakh crore, though focus on high yield book (personal loans, credit card and MFI) led proportion to increase by 60 bps QoQ to 11.6%. Credit substitutes also witnessed reversal with sequential growth at 21%. Deposits grew 18.6% YoY, supported by robust traction in ActivMoney. Asset quality remained broadly stable with Slippages at ~30 bps of advances and GNPA inching up ~18 bps QoQ to 1.9%. NII increased 15.9% YoY with margins steady at 5.22%. Despite trading loss of ₹168 crore, other income grew 17.9% YoY. Higher provision at ₹ 571 crore (~40 bps of advances), led by ₹193 crore for exposure to AIF, kept PAT growth slower at 7.6% YoY to ₹3005 crore.
Views: Healthy and balanced growth with focus on high yielding segment and garnering of deposits remains encouraging. However, given higher share of external benchmark loans, maintaining margins remains a challenge.
Impact: Neutral
Kotak Mahindra Bank reported healthy performance in Q3FY24. Advances growth came a tad lower at 15.7% to ₹ ~3.6 lakh crore, though focus on high yield book (personal loans, credit card and MFI) led proportion to increase by 60 bps QoQ to 11.6%. Credit substitutes also witnessed reversal with sequential growth at 21%. Deposits grew 18.6% YoY, supported by robust traction in ActivMoney. Asset quality remained broadly stable with Slippages at ~30 bps of advances and GNPA inching up ~18 bps QoQ to 1.9%. NII increased 15.9% YoY with margins steady at 5.22%. Despite trading loss of ₹168 crore, other income grew 17.9% YoY. Higher provision at ₹ 571 crore (~40 bps of advances), led by ₹193 crore for exposure to AIF, kept PAT growth slower at 7.6% YoY to ₹3005 crore.