Kotak Mahindra Bank Q4 - Another Quarter Of Mixed Performance: Prabhudas Lilladher

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Prabhudas Lilladher Report

Kotak Mahindra Bank Ltd.’s earnings of Rs 16.8 billion (our estimate: Rs 16.9 billion) was in-line with expectations though certain line items were weak.

Net interest income growth of 8% YoY/flat QoQ and higher provisions of Rs 11.8 billion dragged quality of earnings.

Asset quality though was stable and other stress indicators of restructuring plus special mention account-II was only 23 basis points of loan.

Bank carries a 57 basis points of Covid-19 provision though would have comforted us if it was higher and similarly with provision coverage ratio which was at 63%, lower amongst peers.

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