Q3FY24 Preview: Kotak Mahindra Bank: NII seen at Rs. 64,226 million, PAT at Rs. 32,559 million

18 Jan 2024 , 01:37 PM

Result date: January 20, 2023

Recommendation: Reduce

Target price: Rs. 1,800

(Source: IIFL Research)

Kotak Mahindra Bank could witness strong momentum in loan growth, led by mortgage and unsecured loans. The Bank’s Net Interest Income (NII) could grow about 13% as compared to the year-ago quarter.

Overall costs should remain in check, aiding the Bank’s profitability. Rising cost of funds, though, could have some bearing on the Net Interest Margin. Credit costs are likely to remain stable, a trend mirrored in the Bank’s asset quality.

Profit After Tax or PAT could grow by about 16% over the year-ago quarter.

Important management insights to watch out for:

• Growth outlook across all segments, particularly unsecured loans
• Key drivers of Net Interest Margin

Rs. Million	December 2023 estimates	QoQ change	YoY change
Net Interest Income	64,226	2.00%	13.60%
Profit After Tax	32,559	2.00%	16.65%

Source: Brokerage reports