- Kotak Mahindra’s net income rose by 4.7% year-over-year to 33.4 billion rupees, falling short of the estimated 34.24 billion rupees.
- The bank’s gross non-performing assets increased to 1.49% from the previous quarter’s 1.39%, above the estimate of 1.4%.
- The total amount of gross non-performing assets grew by 10% quarter-over-quarter to 60.33 billion rupees, higher than the projected 58 billion rupees.
- Provisions for the quarter were 6.6 billion rupees, a 14% increase compared to the previous quarter.
- Operating profit climbed by 11% year-over-year to 51 billion rupees, aligning closely with the estimate of 51.08 billion rupees.
- Interest income reached 132.2 billion rupees, an 18% year-over-year increase, surpassing the forecast of 129.75 billion rupees.
- Interest expenses rose by 26% year-over-year to 61.97 billion rupees, exceeding the anticipated 60.06 billion rupees.
- Other income increased by 16% year-over-year to 26.8 billion rupees, below the expected 27.74 billion rupees.
- Operating expenses were 46 billion rupees, a 15% year-over-year rise, better than the estimated 47.13 billion rupees.
- Tax expenses stood at 10.95 billion rupees, up by 4.3% year-over-year, slightly less than the estimate of 11.15 billion rupees.
- Market sentiment towards Kotak Mahindra includes 25 buy ratings, 13 hold ratings, and 5 sell ratings.
Kotak Mahindra Bank on Smartkarma
On Smartkarma, Nimish Maheshwari provides insightful coverage on Kotak Mahindra Bank with a bearish sentiment in the report titled “Why RBI’s Favourite Enemy Kotak Bank Is Barred from Digital Banking Business?” The analysis dives into the ramifications of RBI’s decision to restrict Kotak Bank from expanding its digital business and issuing credit cards. Instead of significant earnings damage (maximum -10%), the report emphasizes the reputational harm to the bank, impacting its premium valuations. Looking ahead, the report suggests a path of moderate growth for the bank.
A look at Kotak Mahindra Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Kotak Mahindra Bank is positioned well for the long-term. With strong scores in Value and Growth at 4 each, the bank appears to offer good value for investors and shows potential for growth. While the Dividend score is at 2, indicating a moderate dividend outlook, the Resilience and Momentum scores at 3 each suggest the bank is reasonably stable and has a steady growth trajectory. Overall, Kotak Mahindra Bank, a full-service commercial bank offering a wide range of products and services in India, seems well-equipped to weather market challenges and continue on a path of growth.
Based on the Smartkarma Smart Scores, Kotak Mahindra Bank presents a promising picture for investors looking at the long haul. With a solid foundation in Value and Growth, supported by moderate scores in Dividend, Resilience, and Momentum, the bank’s overall outlook appears positive. As a full-service commercial bank catering to various banking needs in India, Kotak Mahindra Bank is positioned to provide a diverse range of financial products and services to its customers while maintaining stability and seeking growth opportunities in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
