NPAs seem to be a worry for Kotak Mahindra Bank: Mahantesh Sabarad

economictimes.indiatimes.com:

Mahantesh Sabarad, Independent Market Expert, says “most of the banks, like I have told you before, now have a problem related to growth because the deposit growth, which was lagging in the past, has caught up for the past three-four months but is not enough. That means that the growth on the advancing side is going to be constrained.”
What is your first sense on the numbers, the profitability is a smidge lower. But if I am looking at other internals, they do not look too bad. What's your initial take?
Mahantesh Sabarad: I have not been able to look at NPA numbers, let me know, because that was what was a little crucial for them to look at. And from a perspective of growth, which is the advances growth, I do not think they have achieved a great number.

The net NPA percentage has come down to 0.34 versus 0.37 last quarter and net NPA stands at 1.73 versus 1.72. So there is a smidge of, you know, decline in gross NPA, but net NPAs have actually improved.
Mahantesh Sabarad: I have been able to read it from a stand-alone perspective. So there is not much in terms of a material improvement in the asset quality for them. What was expected is that they were working on the asset quality related issues but that does not seem to have come down for them. As far as the top line, which is the NII is concerned, it suggests that the NIMS are steadier for them. So the result seems to be alright. But the NPAs are a little worry.

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