Kotak Mahindra Bank Q2 Result Update
About the Company:
Kotak Mahindra Bank is an Indian private sector bank headquartered in Mumbai, Maharashtra, India. In February 2003, RBI issued the license to Kotak Mahindra Finance Ltd., the group's flagship company, to carry on banking business.
It offers banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of personal finance, investment banking, general insurance, life insurance and wealth management. As of April 2019, it is second largest Indian private sector bank by market capitalization.
QoQ & YoY Performance:
India’s one of the leading private bank declared the results for the second quarter of financial year ending March 2020.
- Net Interest Income: NII (difference between interest earned and interest expended) that serve as a major factor for future prospects stood at Rs 8418.75 crores slightly up by 1.56% QoQ while on YoY basis there is an increase of 15.56%.
- Net Profits: On QoQ basis, the bank posted 24.51% rise in net profits that are landed to Rs 2399.08 crores after-tax while on a YoY basis, there is a sharp rise of 39.96%.
- Provisions and Contingencies: Bank's provisions and contingencies surged by 35.09% QoQ and 31.52% in YoY.
- NPA (Gross): Gross NPA% is up by 7.43% QoQ and increased by 13.61% YoY.
- NPA (Net): Net NPA ratios are increased by 15.49% QoQ and 12.33% YoY.
As per Lokesh Sethia, SEBI Registered, the stock is currently trading at Rs.1620 per share, slightly up by 0.29% in today trading session. The one of the leading private sector lender reported robust net profit jumped by almost 40% on YoY basis. However, the asset quality of the bank deteriorate. Gross non-performing assets rising to 9.06% on QoQ basis. Though, we recommend it to “Buy”.