Kotak Mahindra Bank (Q4 FY14)

India Infoline News Service | Mumbai |

While advances were flat qoq, bank’s deposits grew by robust 8% qoq drive by robust traction in CASA deposits (16% qoq) and TDs (6.4% qoq).

CMP Rs803, Target Rs770, Downside 4.1% 
  • CV/CE portfolio continues to run down; growth ex-CV/CE book was healthy 17% yoy 

  • CASA improves; substantial branch addition continues 

  • NIM improved by 20bps qoq; sustained improvement in deposits franchise to keep margin firm 

  • Revival in fee growth; cost growth to gradually inch-up

  • Asset quality was stable; provisioning reversal on recoveries aids RoA 

  • Growth continued to slow but profitability intact in Kotak Prime 

  • Lofty valuation could limit upside in the medium term; Retain Market Performer rating 

Result table
(Rs mn)
Q4 FY14
Q3 FY14
% qoq
Q4 FY13
% yoy
Total Interest Income
 22,125
 21,923
 0.9
 22,084
 0.2
Interest expended
 (12,459)
 (12,796)
 (2.6)
 (13,050)
 (4.5)
Net Interest Income
 9,665
 9,127
 5.9
 9,034
 7.0
Other income
 3,405
 2,997
 13.6
 3,639
 (6.4)
Total Income
 13,070
 12,124
 7.8
 12,673
 3.1
Operating expenses
 (6,999)
 (6,277)
 11.5
 (6,139)
 14.0
Provisions
 62
 (697)
 (108.9)
 (374)
 (116.5)
PBT
 6,133
 5,151
 19.1
 6,160
 (0.4)
Tax
 (2,061)
 (1,750)
 17.8
 (1,798)
 14.7
Reported PAT
 4,072
 3,401
 19.7
 4,362
 (6.7)
EPS
 21.2
 17.7
 19.7
 23.4
 (9.4)

Key  Ratios
Q4 FY14
Q3 FY14
chg qoq
Q4 FY13
chg yoy
NIM (%)
 4.7
 4.6
 0.1
 4.5
 0.2
Cost of Funds (%)
 7.1
 7.6
 (0.5)
 7.4
 (0.3)
CASA (%)
 31.9
 29.7
 2.1
 29.8
 2.1
C/D (x)
BSE 1,025.00 10.05 (0.99%)
NSE 1,024.65 9.75 (0.96%)

***Note: This is a NSE Chart

 

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