Kotak Mahindra Bank Ltd. share price target

Boosted by robust loan growth and the higher NIM, Kotak Mahindra
Bank delivered healthy, 20% q/q, core earnings growth in Q4.

We maintain our BUY recommendation on the stock.

Kotak Mahindra Bank (KMB) posted a standalone PAT of INR41.3b (21% beat),
which grew 18.2% YoY in 4QFY24 aided by steady revenue growth and one-off
gains from the reversal of AIF provisions (INR1.57b), interest on IT refund
(INR1.4b), and tax credit (INR2b). Consol. PAT grew 16.9% YoY to ~INR53.4b.

Kotak Mahindra Bank (Kotak) reported a huge 28% beat on PAT (which stood
at Rs41bn), mainly on treasury gains/debt syndication fees, reversal of AIF
provisions (Rs1.6bn), and lower tax rate @21%.

The RBI has barred Kotak Mahindra Bank (KMB) from onboarding new
customers via online/mobile banking channels or issuing new credit cards,
mainly due to unaddressed supervisory concerns emerging from the Regulator’s
IT examination for FY22/23 and from the frequent tech-outages (latest being
on 15-Apr-2024).

POWERIND: In-line quarter but valuations overdone; cut to SELL. FY25 Budget Preview: Focus to remain on consolidation. KMB: NIM intact QoQ; higher provisions dull profits. AXSB: Profits subdued despite strong business growth. HAVL: Slow quarter but summer could bring cheer; maintain BUY. KEII: Decent quarter; maintain HOLD. JKCE: Healthy performance but priced in. GLS: Strong margins make up for subdued revenue growth