Kotak Mahindra Bank Ltd. - Q3 FY23 Earning Highlights | Globe Capital
22-Jan-2023
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
CMP
Rs. 1763
Verdict
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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