Kotak Mahindra Bank Q1 Review – Core Operating Metrics Improve; Slippages Contained: Dolat Capital

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Kotak Mahindra Bank Ltd. exhibited healthy earnings profile with pre provision operating profit growth of 19% y-o-y and highest core pre provision operating profit/assets at 3.2% in the last several quarters.

Profit after tax also benefitted from lower provisions, up 32% y-o-y.

Net interest margin improved to 4.6% despite a sharp 400 basis points q-o-q decline in credit-deposit ratio, benefitting from lower interest reversals and continued decline in cost of fund.

Kotak Mahindra Bank’s asset quality trends were better than industry with gross slippages at 2.7% for the quarter, 200 bps rise in provision coverage ratio to 65%, largely stable bounce rates, and limited restructuring at 0.3% of loans.

Click on the attachment to read the full report:

Dolat Capital Kotak Mahindra Bank Q1FY22 Result Update.pdf


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