Kotak Mahindra Bank Ltd. share price target

With healthy loan growth, continued SA traction, superior NIM, flawless asset quality, digital initiatives and a well-capitalised B/S, we believe KMB is in pole position to ride the India growth story. The subsidiaries' superior performance provides further comfort. Maintain BUY with a SOTP of Rs 1,109 (4.5x FY19E core ABV of Rs 205 + sub value of Rs 186) An uptick in loan growth (18/5% YoY/QoQ) with a gradual improvement over the last 3 qtrs reaffirms our growth expectations. Earnings were inline with estimates led by (1) Uptick in loan growth, (2) Stable and superior NIM at 4.5%, (3) Fee growth of 6% QoQ, (4) SA growth of 6% QoQ, CASA ratio stable QoQ at 43.9% and (5) Stable asset quality performance, GNPA +4% QoQ. Lending subsidiaries i.e. KMP (25% YoY) and KMI (+33% YoY) reported strong growth. K-Sec continued the momentum (~2x PAT growth) and K-AMC reported ~15% PAT growth.

Kotak Mahindra Bank (KMB) has reported a healthy performance in 1QFY18 as its both standalone and consolidated net profit recorded a healthy growth. Its standalone PAT grew by 23.1% YoY (-6.5% QoQ) to Rs9.1bn on the back of healthy growth in customer assets (+19.8% YoY & +6.1% QoQ), best-in-class NIMs (4.5%) and strong growth in core fee income (+42.7% YoY & +6.3% QoQ). Further, the Bank's consolidated PAT surged by 26.2% YoY (-4.1% QoQ) to Rs13.5bn backed by strong bottom line growth recorded by Kotak Securities (+108.3% YoY and +3.3% QoQ to Rs600mn), Kotak Life (+45.1% YoY and +2% QoQ to Rs710mn) and Kotak Prime (+10% YoY & -0.8% QoQ to Rs1.2bn). Customer assets growth was aided by 35.3% YoY and 5.7% QoQ growth...

Kotak Mahindra Bank (KMB) reported a steady set of numbers. NII came in at | 2245 crore, up 17% YoY, attributable to credit offtake of 18% YoY coupled with ~13 bps YoY improvement in NIM at 4.5% Other income growth remained healthy at 23% YoY to | 906.8 crore. Fee income growth came in at 42% YoY to | 805 crore Provision came in as expected at | 203 crore while credit cost came in at ~15 bps in line with management guidance of 50-60 bps. PAT growth came in healthy at 23% YoY to | 913 crore though lower than...

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..