Kotak Mahindra Bank Q3 results on January 20: Stable asset quality, but flat margin expected; PAT likely to fall sequentially

Margins, as per Motilal Oswal, is likely to remain flat at 4.6 percent and CASA retention will be the key driver for NII and NIMs.

"Kotak Mahindra Bank's net profit may grow 28.2 percent YoY to Rs 1,655.1 crore while operating profit can see a 33.7 percent YoY rise to Rs 2,592.3 crore," Motilal Oswal Financial Services said.

NII of the bank can grow 19 percent YoY to Rs 3,496.8 crore. Gross NPA may come at Rs 5,230 crore, while Net NPA is expected at Rs 1,830 crore, said the brokerage.

In terms of percentage, gross NPA may inch up 2.3 percent in Q3FY20 against 2.1 percent in Q3FY19 while net NPA may soften to 0.8 percent in Q3FY20 against 0.7 percent in Q3FY19, Motilal Oswal said.

Brokerage firm Nirmal Bang Securities expects Kotak Mahindra Bank's PAT to come at Rs 1,617.3 crore for Q3FY20, up 25.3 percent YoY, but down 6.2 percent QoQ. On the other hand, the brokerage expects NIM to be 4.3 percent, up 14 bps YoY but down 7 bps QoQ.

Pre-provision profit may come at Rs 2,576 crore, up 32.9 percent YoY and 2.7 percent QoQ, while NII is expected to the tune of Rs 3,436.1 crore, up 16.9 percent YoY and 2.6 percent QoQ for Q3FY20, the estimates of Nirmal Bang Securities showed.

Emkay Global Securities estimates Kotak Bank's PAT for the said quarter to come at Rs 1,648.6 crore, up 27.7 percent YoY but 4.4 percent down QoQ.

The brokerage's estimates showed a pre-provision profit for the bank is likely to come at Rs 2,587.8 crore, up 33.5 percent YoY and 3.2 percent QoQ. NII is expected at Rs 3,422.5 crore for the quarter, up 16.4 percent YoY and 2.2 percent QoQ.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.