Kotak Mahindra Bank Ltd. share price target

NII increased to Rs. 2889.71 Cr in Q4FY17 compared to Rs. 2747.05 Cr in Q3FY17.

ff The Bank has fully recognized the stressed book (6% of ING Vysya book and 2.5% of merged book) of erstwhile ING Vysya Bank as an NPA in FY17. Notably, the Banks does not see any additional NPA due to recent RBI circular on Divergence in Asset Classification & Provisioning. ff With the positive initial response to the Bank's Digital 811 Account, the management believes...

KMB delivered yet another broad-based, strong performance with (1) Sequential loan growth of 5%, (2) Fee uptick of 24% YoY, (3) Healthy CASA expansion ~200bps, (4) Fat NIM of 4.6%, 10bps, (5) Opex growth curtailed at 2%, with C-I ratio down 220bps to ~46% and (6) Superior asset quality, despite the marginal GNPA rise. Lending subs (KMP and KMI) reported strong growth.

Kotak Mahindra Bank (KMB) reported a steady set of numbers. NII came at | 2161 crore, up 16.4% YoY, attributable to credit offtake of 14.7% YoY coupled with ~23 bps YoY improvement in NIM at 4.6% Other income growth came in strong at 47% YoY to | 1003 crore, despite a one-off in Q4FY16. Fee income growth came in at 24% YoY Provision was higher at | 267 crore led by accretion in NPA. However, PAT came higher at | 976 crore, up 40% YoY owing to higher PPP. For FY17, credit cost at ~61 bps vs. ~82 bps in FY16...

KMB brushed aside demonetization woes, posting a stellar PAT of Rs 8.8 bn (+39% YoY), as provisions dipped ~18% YoY and non interest income provided support (+26% YoY). Asset quality improved with GNPA/NNPA falling 7bps/13bps QoQ. Corporate (+24%) and CV loans (+40% YoY) supported overall loan growt..

NII rose to Rs. 2747.05 Cr in Q3FY17 compared to Rs. 2664.21 Cr in Q2FY17. NII increased by 15.91% ( Rs. 377.06 Cr ) when compared with the same period last year.

Kotak Mahindra Banks (KMB) 3QFY17 performance was positive on all parameters, namely (1) Loan growth (3% QoQ), which, though modest, was better than estimates and improves the growth outlook, (2) Fees grew ~15% QoQ (after ~12% QoQ in 2Q), (3) Strong CASA growth, (4) Steady and healthy NIMs, (5) Stable C-I ratio at ~48%, despite demonetisation related opex and (6) Superior asset quality. Amongst subsidiaries, the capital market-related businesses (AMC and IB) reported strong earnings growth.

ICICI Securities Ltd | Retail Equity Research Net interest income (NII) came in at | 2050 crore, up 16.1% YoY, broadly in line with our estimate. Healthy growth in NII is attributable to credit offtake of 12.1% YoY coupled with ~19 bps YoY improvement in margins at 4.49% Provision came at | 192 crore, in line with our estimate of | 197 crore. Credit cost came in at 15 bps (16 bps in Q2FY17). On asset quality front, QoQ net GNPA declined by | 3 crore (| 122 crore in...