• Kotak Mahindra’s net income for 4Q was 41.3 billion rupees, surpassing estimates and showing an 18% year-over-year increase.
• The bank’s gross non-performing assets stood at 1.39%, a decrease from the previous quarter’s 1.73% and also lower than the estimated 1.69%.
• Gross non-performing assets were valued at 52.7 billion rupees, marking a 16% quarter-over-quarter decrease and again beating the estimated 64.94 billion rupees.
• Provisions for the quarter were registered at 2.64 billion rupees, a significant decrease of 54% from the previous quarter.
• Interest income for 4Q reached 123.1 billion rupees, increasing by 25% year-over-year and surpassing the estimated 121.45 billion rupees.
• Interest expense was 54 billion rupees, a 45% year-over-year increase but slightly lower than the estimated 54.16 billion rupees.
• Other income for the quarter came in at 29.8 billion rupees, a 36% year-over-year increase and exceeding the estimated 25.01 billion rupees.
• The operating profit for 4Q was 54.6 billion rupees, marking a 17% increase year-over-year and surpassing the estimated 48.37 billion rupees.
• Operating expenses for the quarter was 44.3 billion rupees, a 22% increase from previous year but slightly higher than the estimate of 43.55 billion rupees.
• Tax expense for 4Q was 10.6 billion rupees, a 6% year-over-year increase, but lower than the estimated 11.18 billion rupees.
• Return on assets for the quarter remained consistent year-over-year at 0.74%.
• The dividend per share declared by the bank was 2 rupees.
• The bank received 21 buys, 15 holds, and 7 sells in analyst ratings.
Kotak Mahindra Bank on Smartkarma
Top independent analysts on Smartkarma have provided insightful coverage on Kotak Mahindra Bank, shedding light on key developments impacting the bank’s operations and investor sentiment.
Nimish Maheshwari‘s analysis delves into the recent regulatory action by RBI that has barred Kotak Bank from expanding its digital business and credit card issuance. This move is expected to have more reputational damage than direct earnings impact, affecting the premium valuations the bank used to command. Meanwhile, Sumeet Singh‘s report focuses on CPPIB’s lockup release involving a significant stake in Kotak Mahindra Bank, providing detailed insights on the dynamics of the release and the implications of past deals performance. These comprehensive research reports offer valuable perspectives for investors evaluating the outlook for Kotak Mahindra Bank.
A look at Kotak Mahindra Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
In assessing the long-term outlook for Kotak Mahindra Bank, an examination of its Smartkarma Smart Scores reveals a mixed picture. While the bank demonstrates strength in areas of value and resilience with scores of 4, indicating favorable metrics in these aspects, it faces challenges in terms of dividend and momentum, scoring a 2 on each. The growth score falls in the middle at 3, suggesting a moderate outlook in this area. Kotak Mahindra Bank Limited stands as a full-service commercial bank in India, providing a diverse range of banking services to individuals, businesses, and corporations.
Despite its solid performance in value and resilience, Kotak Mahindra Bank‘s lower scores in dividend and momentum may signal potential areas for improvement or focus. Investors looking at the bank’s long-term prospects may need to consider the balance of these factors to make informed decisions regarding their investment strategies. With a comprehensive suite of banking products and services available, Kotak Mahindra Bank continues to cater to the financial needs of its customer base in the Indian market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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