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Dolat Capital Report
Kotak Mahindra Bank Ltd. reported a robust quarter with net interest income growth of 35%, aided by net interest margin expansion of 25 basis points QoQ to 5.75%.
Sequential decline in opex (by 7% QoQ) mainly led by high base of promotional expenses in Q3 and drop in annuity rates aided a strong beat on profit after tax, aiding return on asset of 3% for the quarter.
Slippages at ~1%, low net slippages and write-back of contingent provisions (Rs 0.13 billion) aided credit costs of 18 bps in Q4.
Kotak Mahindra Bank's gross non-performing asset ratio moderated by 7 bps QoQ to 1.8%, with 175 bps sequential rise in provision coverage ratio to over 79%.
Muted loan growth at 3% QoQ was owing to decline in corporate book, and deposits grew by 5% QoQ with healthy sequential growth across current account and savings account and term deposits. Calculated cost of fund at 4% remains industry best.
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