Kotak Mahindra Bank reported a strong business and operational performance. Asset quality continued to remain steady. KMB posted strong NII growth at 26.8% YoY and 8.6% QoQ to Rs 5099 crore, aided by 25 bps sequential expansion in NIMs to 5.17% and robust growth in advances. C/I ratio increased 291 bps YoY but de-grew 373 bps QoQ to 49.4%. Credit cost inched up marginally on sequential basis to 26 bps. PAT reported a strong at 27% YoY and 25% QoQ to Rs 2580.7 crore
Overall loan growth was healthy at 25.1% YoY and 4.9% QoQ to Rs 2.94 lakh crore. Deposits were up 11.5% YoY to Rs 3.25 lakh crore, wherein focus was on term deposit accretion. Asset quality performance improved as GNPA and NNPA declined 16 bps and 7 bps sequentially to 2.08% and 0.55%, respectively.
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Pedalling growth with focus on higher yielding segments aid margins and operational performance. Further, steady credit cost to drive return ratios trajectory ahead. Also, gradual increase in contribution of subsidiaries will add to consolidated valuation
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