Kotak Mahindra Bank Ltd. - Q3 FY23 Earning Highlights | Globe Capital Market LTD.
Kotak Mahindra Bank Ltd. – Q3 FY23 Earning Highlights

The bank attributed the NIM expansion to its loan book pricing mix.

Q3 FY23 Earning Overview and Verdict
Rs. 1763
Beats the market estimates

Earning Highlights Q3FY23:

  • Kotak Mahindra Bank’s profit grew by 31% year-on-year (YoY) to Rs 2,792 crore in the October-December quarter of 2022-23 & Consolidated PAT for Q3FY23 was ₹ 3,995 crore, up 17% from ₹ 3,403 crore in Q3FY22 (₹ 3,608 crore for Q2FY23).
  • The Net investment income (NII) was up over 30% Y-o-Y to Rs 5653 crore in the Q3 of FY23.
  • At the consolidated level, the Return on Assets (ROA) (annualized) was 2.76% for Q3FY23 (2.60% for Q3FY22) and the Return on Equity (ROE) (annualized) was 15.04% for Q3FY23 (14.81% for Q3FY22).
  • As at December 31, 2022, GNPA was 1.90% & NNPA was 0.43%. Credit cost on advances for Q3FY23 was 27 bps (annualised) (including standard provisioning; excluding reversal of COVID & restructuring). The provision coverage ratio stood at 77.6%.
  • Net Interest Income (NII) for Q3FY23 increased to ₹ 5,653 crore, from ₹ 4,334 crore in Q3FY22, up 30% YoY. Net Interest Margin (NIM) was 5.47% for Q3FY23.
  • Consolidated Capital Adequacy Ratio as per Basel III as at December 31, 2022 was 23.2% and CET I ratio was 22.3%. (including unaudited profits).
  • Consolidated Capital and Reserves & Surplus as at December 31, 2022 was ₹ 1,07,670 crore (₹ 93,141 crore as at December 31, 2021). The Book Value per Share was ₹
  • Total assets managed/advised by the Group as at December 31, 2022 were ₹ 4,05,269 crore up 5% over ₹3,86,465 crore as at December 31, 2021.

Valuation & View:

At the CMP of Rs. 1763, the stock is trading at an annualised P/BV multiple of 2.44 times with the annualised Book Value of Rs. 720, which is fairly valued.


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