Kotak Mahindra Bank Q2 Results Preview: Net profit seen over 10%, NIIs to rise 20% on strong loan growth

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Kotak Mahindra Bank Q2 Results Preview: Kotak Mahindra Bank is all set to announce its July-September quarter results for fiscal 2023-24 (Q2FY24) on Saturday, October 21. The leading private sector lender is expected to report a healthy quarter aided by higher net-interest income (NIIs), strong loan growth and net profit, according to estimates by analysts and leading brokerage houses. This is the first quarterly earnings results since the bank's managing director (MD) and chief executive officer (CEO) Uday Kotak resigned from his position in September, three months ahead of schedule, and passed on the baton to Dipak Gupta - who is currently serving as interim CEO till December 31, 2023.

Also Read: ‘I stand in a lonely place of being a founder..’: Uday Kotak's resignation letter to Kotak Mahindra Bank. Full text here -Domestic brokerage house Prabhudas Lilladher estimates that the bank's net profit will rise around 12.7 per cent to ₹2,907 crore in the September quarter, compared to ₹2,580 crore in the year-ago period. The NIIs are expected to rise about 20 per cent to ₹6,107 crore, compared to ₹5,099 crore in the corresponding period last year.

-''We expect loan growth to be strong at 5 per cent sequentially. However, margins could fall sharply by 33 basis points (bps) sequentially to 5.18 per cent due to higher EBLR linked portfolio. Asset quality is expected to improve with gross non-performing assets (GNPAs) decreasing by 7 bps,'' said Prabhudas Lilladher.