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Kotak Mahindra Bank Q3 Results Review - Issues With Savings Account Book Continue: Yes Securities

Savings account balances of ticket size in excess of Rs 1 million are tending to move out or move into the term deposit bucket.

<div class="paragraphs"><p>Vehicles parked in front of Kotak Mahindra Bank Branch at Prabhadevi, Mumbai, (Photo: BQ Prime)</p></div>
Vehicles parked in front of Kotak Mahindra Bank Branch at Prabhadevi, Mumbai, (Photo: BQ Prime)

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Yes Securities Report

Savings account balances of ticket size in excess of Rs 1 million are tending to move out or move into the term deposit bucket. Furthermore, there has also been some impact due to non-replenishment of government money.

Corporate loans grew 6.8% QoQ even though the spread in this business is under pressure, something Kotak Mahindra Bank seeks to avoid. Within retail, unsecured businesses enjoyed breath-taking sequential growth. Personal loans, business loans, consumer durables), credit cards and retail microfinance grew 10.2%, 15.9% and 20.1% QoQ, respectively.

The share of unsecured retail, which is now 9.3% of loan book, is targeted to be in the mid-teens, which should be achieved by Q4 FY24.

Provisions were Rs 1.49 billion, up by 8.6% QoQ and against a provision write-back of Rs 1,317 million in the same quarter a year ago. There was some reversal of Covid provisions during the quarter. Excluding the reversals, the credit cost for the quarter amounted to 27 bps on annualised basis.

Click on the attachment to read the full report:

Yes Securities Kotak Mahindra Bank Q3FY23 Result Report.pdf
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Kotak Mahindra Bank Q3 Review - Business Growth Robust; Margins Continue To Scale New Highs: Motilal Oswal

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