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NEW DELHI: Kotak Mahindra Bank is expected to report a strong set of quarterly numbers, with both profit and NII growth in double digits. Margins are seen expanding on a year-on-year basis. All eyes would be on the asset quality for SME segment, other unsecured portfolio, and restructured book.

Emkay Global sees the private lender’s standalone profit rising 21.6 per cent YoY to Rs 2,045 crore from Rs 1,682.40 crore in the year-ago quarter. NII is seen growing 14.9 per cent YoY to Rs 4,415 crore from Rs 3,842.80 crore in the same quarter last year. NIM margin is seen expanding 23 basis points to 4.6 per cent from 4.4 per cent in the year-ago quarter.

“Growth momentum in mortgages remains strong, but CV is lackluster. Margins may remain flat QoQ. Slippages to remain largely flattish sequentially,” it said.

Sharekhan expects standalone profit to surge 46.6 per cent YoY to Rs 2,466 crore. It sees NII climbing 27.3 per cent YoY to Rs 4,894 crore. NIM is seen at 4.5 per cent.

On a consolidated basis, YES Securities expects Kotak Mahindra Bank to report a 10.9 per cent YoY rise in profit at Rs 2,831.60 crore on a 19.2 per cent YoY rise in net interest income (NII) at Rs 5,982.40 crore. Pre-provision operating profit is seen falling 6 per cent to Rs 4,302 crore.

“Slippages should decline sequentially due to underlying factors. Net interest margin should be slightly higher on sequential basis due to rise in share of unsecured retail lending. Fee income would only be slightly higher due to sluggish card fees. Treasury profit would be subdued due to rise in bond yields. Provisions would be higher sequentially,” it said.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)


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