Q2FY24 Preview: Kotak Mahindra Bank: NII seen at Rs. 63,345 million, PAT at Rs. 31,377 million

20 Oct 2023 , 10:05 AM

Result date: October 21, 2023

Recommendation: Reduce

Target price: Rs. 1,850

(Source: IIFL Research)

Kotak Mahindra Bank could post strong loan growth for the September 2023 quarter, on the back of continued momentum in mortgage loans and unsecured loans. Growth in liabilities is also likely to be healthy. Net Interest Income (NII) could grow by 24% as compared to the year-ago quarter.

Net Interest Margin (NIM) though could see some moderation owing to higher cost of funds. Pre-Provisioning Operating Profit (PPOP) could grow 27% over the year-ago quarter. Overall asset quality is likely to remain stable with slippages and credit costs being under control.

Profit After Tax (PAT) could grow 22% as compared to the year-ago quarter.

Important management insights to watch out for:

• Trends in credit demand across segments and markets
• Key margin drivers going forward
• Outlook on asset quality

Rs. Million	June 2023 estimates	YoY change	QoQ change
NII	63,345	24.2%	1.6%
PPOP	45,405	27.3%	(8.3)%
Profit After Tax	31,377	21.6%	(9.1)%

Source: Brokerage Reports