Kotak Mahindra Bank Ltd. share price target

Maintain BUY with SOTP of Rs 1,371 (4.5x Mar-20 core ABV of Rs 238 + Rs 302 for subs). Even as KMB reported an expectedly impressive 4QFY18, CASA accretion stood out (Rs 240bn over FY18, 2x FY17). Loan growth (+25% YoY) was at an 8-qtr high, with robust fee growth (+33% YoY) and uptick in NIM (4.35%, +15bps QoQ). Asset quality improved further (G/NNPAs down 9/11bps QoQ). Zero restructured loans and negligible SMA-II (4bps) capped a perfect show. Despite the investments in 811 (Rs 1.5bn), opex growth was restricted to 17%.

Asset quality held stable, with NNPL declining by 3.6% QoQ, even as GNPL increased by 3% QoQ. PCR improved by 300bp QoQ to 56.5%, led by significantly higher-than-expected provisioning. GNPL/NNPL ratios, thus, improved 9bp/11bp QoQ to 2.22%/0.98%. SMA-2 advances stood at 4bp of loans at INR720m lowest-ever level since KMB started reporting the same. Loans grew 24.7% YoY (+6.7% QoQ); deposits rose 22.4% YoY (+6.5% QoQ). Share of core deposits (CASA+ TD less than INR50m) was 77% v/s 75% QoQ. Subs performance robust: a) KMPL reported PAT of INR1.6b (+20% YoY),...

Kotak Mahindra Bank surpassed analysts estimates, by witnessing nearly 20% rise in it's standalone net profit during quarter ended December 31, 2017 (Q3FY18). The bank posted standalone net profit of Rs 1,053.21 crore in Q3FY18, rising by 19.71% from Rs 879.75 crore in the corresponding period of the previous year. Q3FY18 net profit was also up by 5.92% from Rs 994.31 crore in the preceding quarter. Standalone net interest income (NII) was at Rs 2,393.72 crore, registering growth of 16.74% from Rs 2,050.32 crore in Q3FY17 and by 3.50% from Rs 2,312.66 crore in Q2FY17. Provisions of Kotak were at Rs 212.77 crore, which rose by 10.76% from Rs 192.10 crore in...

KMB's Q3FY18 PAT at Rs 10.5 bn was lower than estimates on higher than expected operating expenses. Loan growth at 23% YoY continued to gain momentum and management believes +20% YoY growth is sustainable.

ICICI Securities Ltd | Retail Equity Research Kotak Mahindra Bank (KMB) reported steady set of numbers. NII grew 16.7% YoY to |2394 crore, led by healthy credit offtake at 23% YoY to |159071 crore. NIM declined 13 bps QoQ to 4.2%, but...

ff With the positive initial response to Digital 811 Account, KMB expects the traction to continue in FY19 as well. However, standalone opex was partially impacted due to higher promotional cost for same. The Management has clearly indicated that apart from organic growth, the...

Kotak Mahindra Bank Ltd Q3FY18 results comment NII grew to Rs. 3185.9 Cr in Q3FY18 compared to Rs. 3085.26 Cr in Q2FY18

Margin contracted another 13bp QoQ to 4.2%, while fee growth stood at a healthy 14% YoY. CASA deposits grew 34% YoY to INR843.9b, of which SA deposits grew 52% YoY (+9% QoQ). However, the CASA ratio declined 110bp QoQ (+470bp YoY) to 46.7%. Absolute GNPA declined 2.6% QoQ, while the GNPL ratio improved by 16bpQoQ to 2.31%. PCR (cal.) improved by 419bp QoQ to 53.9%. Restructured loans stood stable at INR670m (4bp), while SMA2 accounts increased to19bp of loans (INR3.08b) v/s 16bp in the previous quarter. Loans grew 23% YoY (+4% QoQ), while deposits increased 21% YoY (+9%QoQ). KMB guided for 20%+ loan growth, as it sees improving trends in the micro environment. Share of core deposits (CASA+less than INR50m retail TD) stood at 75% (77% in 2QFY18)

Maintain BUY with a SOTP of Rs 1,212 (4.5x Dec-19 core ABV of Rs 226 + sub value of Rs 193). KMBs stellar show continued with (1) Sustained growth momentum (+20% for 2nd consecutive qtr), (2) Creditable SA accretion (+54% YoY) on a higher base, (3) Further improvement in asset quality coupled with a jump in PCR and (4) increasing oplev. While NIM dipped sequentially, it remains healthy at 4.2%. Subsidiaries contribution to the profitability pie increased (35% of consol PAT) largely driven by a flourishing equity market related subs.

KMBs Q2FY18 PAT grew 22% YoY to Rs 9.9 bn on lower-than-expected operating expenses and provisions. Key highlights of the result: loan growth at 21% YoY continued to gain momentum, while CASA ratio increased by ~400 bps QoQ to 47.8%.