Kotak Bank Q4 Preview: Profit to drop marginally; loan growth seen steady

Leading private sector lender Kotak Mahindra Bank is likely to report a decline in net profit for the fourth quarter ended March 2024. However, loan growth is expected to be steady and asset quality in control.

Profit for the fourth quarter is seen falling around 3% year-on-year, according to an average estimate of four brokerages. Meanwhile, net interest income for the period is expected to grow 10% year-on-year.

Key monitorables for investors on the Q4 earnings chart include commentary on NIMs (net interest margins) and growth outlook, especially the growth trajectory in the unsecured book.

In the preceding December quarter, the lender saw 8% year-on-year growth in net profit to Rs 3,005 crore and the net interest income rose nearly 16% to Rs 6,553 crore.

Here’s what to expect from Kotak Bank’s Q4:

Axis Securities

Business growth momentum is expected to remain healthy and growth in the unsecured portfolio to continue. While margin contraction may be visible, cost ratios are expected to remain stable, supporting operational profitability. Stable credit costs to support earnings and asset quality to remain in control.

Nuvama

We expect margin decline on a sequential basis, while NII is expected to grow 3% quarter-on-quarter. Strong growth in other income may lead to 4% growth in PPOP. We expect loans and deposits to grow 4% quarter-on-quarter.

Motilal Oswal

Expect steady traction in loan growth and liability growth may remain healthy. Margins are likely to compress further and asset quality will remain in control.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)