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

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.

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