News

Kotak Mahindra Bank – Q2FY27 first cut

• NII rose 15.7% y-o-y to Rs. 8,459 crore, 2.9% ahead of estimates, though NIM fell 22 bps q-o-q to 4.31% largely as FCNR(B) deposits surged
• Fee income was strong, up 21% y-o-y, while core opex was flat q-o-q, taking cost-to-income down to 45.2%.
• PAT grew 29.5% y-o-y to Rs. 4,212 crore, 2% below estimates on higher standard asset provisions.
• Asset quality improved; GNPA fell 14 bps q-o-q to 1.04% and NNPA declined 3 bps to 0.24%.
• Healthy core trends and improving asset quality keep us positive