Brokerages forecast 6.7% rise in Kotak Mahindra Bank net profit for Q4

Kotak Bank

Kotak Mahindra Bank is expected to report a higher profit of Rs 2925.7 crore for the fourth quarter and a 33.2 percent on-year rise in net interest income (NII) on April 29, according to a Moneycontrol poll of three brokerages.

Brokerage house ICICI Direct has pegged the Kotak Mahindra Bank net profit at Rs. 2,984.8 crore, up 7.9 percent on-year and 6.9 percent on-quarter. Net Interest Income (NII) is expected to increase by 31.5 percent YoY and  5.2 percent QoQ to Rs. 5,946.7 crore. Pre-provision operating profit (PPOP) is likely to rise by 24.1 percent over last year and 7.7 percent over last quarter to Rs. 4,144.5 crore.

Motilal Oswal expects the country's third largest private sector bank by market capitalisation to report a net profit of Rs. 3,014.9 crore - up 8.9 percent on-year and 8 percent on-quarter - and a 33.1 percent jump in net interest income over the last year and 6.4 percent over the last quarter to Rs 6,015.9 crore. The brokerage house pegged the PPOP up 26.9 percent YoY and 10.1 percent QoQ to Rs. 4,239.5 crore.

Prabhudas Lilladher expects the lender to post a 3.4 percent rise in net profit of Rs. 2,777.4 crore over the last year, as against a 0.5 percent fall over the last quarter. NII is expected to increase 35.1 percent YoY and  6.1 percent QoQ to Rs. 5,998.8 crore. The bank's PPOP is likely to rise by 18.5 percent on-year and 0.3 percent on-quarter to Rs. 3,863.2 crore, it said.

Recent Developments in Kotak Bank

According to experts, veteran banker Uday Kotak is unlikely to face hurdles in taking up the role of a non-executive, non-independent director after his tenure as managing director and chief executive officer ends later this year.

This is because the three-year cooling-off period norm set by the Reserve Bank of India (RBI) for the reappointment of an MD, CEO or whole-time director (WTD) will not apply for non-executive positions, they said. Earlier, there were reports that the central bank may be looking at Kotak’s appointment in the non-executive role post his tenure as CEO.

Stock Performance

The Kotak Bank share has given a return of 60.50 percent over the last five years, underperforming the benchmark Bank Nifty index, which has delivered 69.18 percent return in the same period.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.