Kotak Mahindra Bank Q2 Review - NIM Impacted By One-Off Items; Smooth Management Transition Key: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Kotak Mahindra Bank Ltd. Q2 FY24 results were marginally below our estimates, with net interest income/pre-provision operating profit/profit after tax coming at a variation of 0.2%/-1.5%/-2.1% versus our estimates. This was on account of lower other income due to a higher base of Q1 FY24. Net interest margin declined sequentially from 5.57% in Q1 FY24 to 5.22% in Q2 FY24. There was one-off impact of 15 basis points on NIM due to incremental cash reserve ratio, increased liquidity and short-term inflows invested in lower yielding liquid instruments.While the appointment of Ashok Vaswani as new Managing Director and Chief Executive Officer of the Kotak Mahindra Bank brings in clarity with respect to leadership, smooth management transition will be key. With his vast expertise in building corporate and consumer lending businesses at a global scale, Vaswani’s leadership is expected to accelerate digital and tech initiatives at Kotak Bank.We roll forward our valuation to September-2025E adjusted book value, lowering our target multiple to three times. After adding subsidiary valuation of Rs 381 per share, we arrive at a target price of Rs 2,182 (as against Rs 2,371 earlier, valuing it at 3.1 times FY25E adjusted book value plus subsidiary value per share). We maintain a ‘Buy’ rating on Kotak Mahindra Bank..Click on the attachment to read the full report:.Paytm Q2 Results Review - Sees Improved Renewal Opportunity In Loan Distribution: Yes Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Kotak Mahindra Bank Q2 Review - NIM Impacted By One-Off Items; Smooth Management Transition Key: Nirmal Bang

Lower other income impacted overall profitability QoQ.

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