Kotak Mahindra Bank Q2 Results Review - Healthy Growth Across Businesses: ICICI Direct

The bank posted strong NII growth, aided by 25 bps sequential expansion in NIM, robust growth in advances, other income grew.

<div class="paragraphs"><p>Exterior of Kotak Mahindra Bank Ltd. (Photo: Vijay Sarape/ BQ Prime)</p></div>
Exterior of Kotak Mahindra Bank Ltd. (Photo: Vijay Sarape/ BQ Prime)

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ICICI Direct Report

Kotak Mahindra Bank Ltd. posted strong net interest income growth at 26.8% YoY and 8.6% QoQ to Rs 5099 crore, aided by 25 basis points sequential expansion in net interest margins to 5.17% and robust growth in advances.

Other income grew ~8% YoY and jumped 57.1% QoQ to Rs 1954 crore, as there was trading and mark-to-market hit in Q1 FY23. Fee income grew 24% YoY and 6.3% on QoQ basis at Rs 1760 crore.

Kotak Mahindra Bank's opex increased 28.5% YoY and 10.4% QoQ. As a result, the cost/income ratio increased 291 bps YoY but de-grew 373 bps QoQ to 49.4%. Credit cost inched up marginally on sequential basis to 26 bps. Profit after tax reported a strong growth at 27% YoY and 25% QoQ to Rs 2580.7 crore.

Advances growth was healthy at 25.1% YoY and 4.9% QoQ to Rs 2.94 lakh crore, led by personal and consumer durable, credit card and home loans that increased 82%, 81% and 40% YoY respectively.

Click on the attachment to read the full report:

ICICI Direct Kotak Mahindra Bank Q2FY23.pdf


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