Top brokerages expect Kotak Mahindra Bank’s net profit for the Q4 to fall around 3% year-on-year. Meanwhile, net interest income for the period is expected to grow 10% year-on-year.
In the Decemeber quarter of FY24, the lender reported a 7.63 per cent year-on-year (YoY) jump in standalone net profit at Rs 3,005.01 crore.
Private sector lender Kotak Mahindra Bank will share its earnings and net profit details on Saturday for the fourth quarter of March 2024. As per brokerages, the private lender may see a marginal fall in its net profit. However, loan growth is expected to be steady and asset quality in control.
The brokerages expect the net profit for the Q4 to fall around 3% year-on-year. Meanwhile, net interest income for the period is expected to grow 10% year-on-year. On the back of robust loan growth, the private bank might clock double-digit rise in net interest income in the Q4 FY24.
Here’s a look at what top brokerages expect in the Q4 results
1. Nuvama
> Margin decline on a sequential basis, while NII is expected to grow 3% quarter-on-quarter.
> Strong growth in other income may lead to 4% growth in PPOP. We expect loans and deposits to grow 4% quarter-on-quarter.
2. Axis Securities
> Business growth momentum is expected to remain healthy and growth in the unsecured portfolio to continue.
> While margin contraction may be visible, cost ratios are expected to remain stable, supporting operational profitability.
> Stable credit costs to support earnings and asset quality to remain in control.
3. Prabhudas Lilladher
> Kotak Mahindra Bank’s net interest margins (NIMs) to shrink by up to 28 basis points (bps) YoY to 5.21 percent in Q4FY24 from 5.34 percent in the year-ago period.
4. Motilal Oswal
> The lender’s asset quality is seen to remain in control.
> Gross non-performing assets (NPAs) may slip to 1.69 percent in Q4FY24 from 1.78 percent in Q4FY23, whereas net NPAs may decline to 0.33 percent in Q4FY24 from 0.37 percent in the year-ago period.
Q3 FY24
In the December quarter of FY24, the lender reported a 7.63 per cent year-on-year (YoY) jump in standalone net profit at Rs 3,005.01 crore compared with Rs 2,791.88 crore in the Q3 FY23.
The private lender said its net interest income for the quarter rose 16 per cent YoY to 6,554 crore from Rs 5,653 crore YoY.
Net interest margin (NIM) for the quarter came in at 5.22 per cent. Kotak Mahindra Bank said the quarter saw the private lender making Rs 143 crore in provision (post tax) on applicable Alternate Investment Fund (AIF) investments pursuant to RBI’s circular dated December 19, 2023.
Interest earned for the quarter stood at Rs 11,799.02 crore, up 31.2 per cent over Rs 8,998.61 crore in the year-ago quarter. Income from fees and services rose 26 per cent YoY to Rs 2,144 crore from Rs 1,695 crore.
The bank said its gross non-performing assets (NPAs) as percentage of advances stood at 1.73 per cent for the quarter against 1.90 per cent in the year-ago quarter. Net non-performing assets came in at 0.34 per cent against 0.43 per cent YoY.
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