Q3FY15 Result Review - Kotak Mahindra Bank :: HDFC Securities

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In Q3FY15 KMB reported standalone NII of Rs 1059.4 cr, up 16.1% y-o-y and 2% q-o-q while Net Profits have gone up 36.6% y-o-y and 4.5% q-o-q to Rs 464.5 cr. NIMs have remained
almost stable at 4.7% with CASA maintained at 31.55%. Bank has added 20 more branches in this quarter. Asset quality has improved with lower NNPAs at 0.97%. Consolidated
performance was slightly muted with lackluster performance from its subsidiaries. Consolidated NII has gone up 12.8% y-o-y and down 0.3% q-o-q to Rs 1578.8 cr while net profits
were up 21.2% y-o-y and flattish q-o-q. Bank’s credit growth was strong at 21.6% y-o-y to Rs 64641 cr. The bank is expected to write back provisions of Rs. 1800-2000 crore over the
next three years from its stressed asset book.
Credit growth robust at 20.4%
Bank advances have gone up 21.6% y-o-y to Rs 64641 cr. Excluding the CV segment, advances have gone up 26.5% to Rs 59614 cr. Growth continued to be led by corporate banking -
up 32.6% y-o-y followed by agriculture financing which was up 20.2% y-o-y. Personal loans too witnessed healthy traction of 87.9% y-o-y to Rs 5929 cr. Mortgage loans were up 19.9% yo-y
to Rs 13738 cr.

NIM almost stable at 4.7%
Net Interest income improved in this quarter up 16.1% y-o-y. While interest earned has gone up 14% y-o-y, interest expenses have gone up 12.6% y-o-y. There was a marginal dip in NIMs
down from 5% in Q2FY15 to 4.7% this quarter. Going by the trend seen in the last 2 years, quarterly NIMs are seen trending downwards towards the third quarter and then picks up again
in the next three as seen in the chart below.

LINK

http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010911