Kotak Mahindra Bank Q4 PAT seen up 23% to Rs 364 cr

Private sector lender Kotak Mahindra Bank is set to report its fourth quarter (January-March) numbers on Thursday. According to the average of the CNBC-TV18 poll, standalone (pure banking business) profit after tax is expected to grow by 23 percent year-on-year to Rs 364 crore.

Net interest income (NII) is likely to jump 27 percent to Rs 870 crore from Rs 688 crore Y-o-Y.

Meanwhile, its consolidated profit after tax may rise 23 percent Y-o-Y to Rs 641 crore and net interest income is seen increasing 23 percent to Rs 1,291 crore in fourth quarter.

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Expectations

Growth in NII numbers on standalone as well as consolidated basis are expected to be similar to previous quarters. In third quarter FY13, standalone NII grew by 26.3 percent Y-o-Y to Rs 822.8 crore and consolidated NII rose 23 percent to Rs 1,231 crore.

Consolidated margins could come off 10 basis points Q-o-Q to 4.5 percent in fourth quarter. Net interest margins trended lower to 4.6 percent in third quarter as against 4.7 percent Q-o-Q. The bank has seen deterioration consistently from levels - 5 percent in Q1FY12 - but still above industry average.

Asset quality comfort is expected to continue in January-March quarter. Analysts do not expect negative surprise on both the standalone and consolidated basis. On Y-o-Y, it could see deterioration in asset quality but it is likely to be maintained Q-o-Q.

The bank has negligible exposure to large size infra projects + low restructuring. Its restructured book was Rs 9.7 crore in third quarter FY13 as against Rs 25 crore in a year ago period.