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Yes Securities Report
Management has stated that Kotak Mahindra Bank Ltd. would grow at 1.5-2 times of nominal gross domestic product growth rate:
The real GDP growth forecast is 6.5% and, assuming an inflation rate of 5%, management arrives at a nominal GDP growth forecast of 11.5%.
The bank would strive to grow at the higher end of the guidance. Assuming repo rates are not dramatically lower, Kotak Mahindra Bank's net interest margin should be at least 5%: Management explained that, on the one hand, there has been a global slowdown, whereas, in India, one needs to watch the El Nino situation. Every El Nino does not lead to a drought. If the El Nino situation does not cause any damage, then there could be room for rate cuts at some point.
There is no change to branch expansion strategy, as such, but management did talk about increasing the pace of branch addition:
The focus on opening branches in metro locations would continue. Branch presence is required for business customers and, also, to give comfort to potential customers who look at branch proximity. The bank opened about 100 branches in FY23 and plans to open about 150 branches in FY24.
Savings account balance growth was impacted by customers moving balance to debt mutual funds and life insurance products before the new tax rules kicked in:
SA balances below Rs 1 million rose 3% QoQ. Two new products in the form of floating rate savings account and the Silk saving account for women have been launched.
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