Q1 results preview: Kotak Mahindra Bank can continue to see traction in both loan, deposit growth
Kotak Mahindra Bank is scheduled to announce its financial results for the first quarter of fiscal year 2024 (Q1 FY24) on July 21, 2023. Analysts expect the bank to report a net interest income (NII) of Rs. 6,207 crore, up 18% year-on-year (YoY), and a profit after tax (PAT) of Rs.
2,124 crore, up 30% YoY. The strong growth in NII is expected to be driven by the bank's healthy loan growth and rising interest rates. The bank's loan book is expected to grow by 15-16% YoY in Q1 FY24, while its net interest margin (NIM) is expected to remain stable at around 4%.
The PAT is also expected to grow strongly, driven by the robust NII and lower provisioning requirements. The bank's provisioning is expected to decline to around 1% of its advances in Q1 FY24, from 1.2% in the previous quarter. Overall, analysts expect Kotak Mahindra Bank to report strong financial results for Q1 FY24.
The bank's strong performance is likely to be driven by its healthy loan growth, rising interest rates, and lower provisioning requirements. Healthy loan growth: The bank's loan book is expected to grow by 15-16% YoY in Q1 FY24, led by strong growth in its retail and corporate loan portfolios. Rising interest rates: The bank's NIM is expected to remain stable at around 4% in Q1 FY24, despite the recent increase in interest rates.
This is because the bank's deposit base is largely composed of low-cost CASA deposits. Lower provisioning requirements: The bank's provisioning is expected to decline to around 1% of its advances in Q1 FY24, from 1.2% in the previous quarter. This is due to the fact that the bank's asset quality has improved in recent quarters.
Read more on livemint.com
