KR Choksey's research report on Kotak Mahindra Bank
Net Interest Income (NII) for Q2FY25 has surged to INR 70,196 Mn, a growth of 11.5% YoY (+2.6% QoQ). This NII figure is 1.3% lower than our estimates. Pre-Provision Operating Profit (PPOP) was INR 50,993 Mn, a growth of 10.6% YoY (-2.9% QoQ). The bank's adjusted PAT stood at INR 33,437 Mn, a growth of 4.8% YoY (-5.0% QoQ), in line with our estimates. The bank's focus on expanding granular deposits, its strategic acquisitions, and its emphasis on digital innovation are key to driving sustainable growth. With a strong balance sheet and continued investment in technology, the bank is well-positioned to capitalize on organic and inorganic growth opportunities once the RBI tech restrictions are lifted.
Outlook
Considering slightly higher credit costs, we have cut our EPS for FY25E/ FY26E by 3.7%/ 3.3%. We revise our target price to INR 2,025 per share, maintaining our rating of "ACCUMULATE" on the shares.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
