Kotak Mahindra Bank

Research report by 'Ventura Securities Ltd'
     
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Kotak Mahindra Bank reported consolidated net profit of Rs. 319.7 crore showing a growth of 30% yoy in Q1FY11. On standalone basis, net profit grew by 24% yoy to Rs. 186.9 crore. The advances (stood at Rs. 32967 crore at the end of Q1FY10) experienced growth both on sequentially and on yearly basis of 42% yoy and 11% qoq respectively during the quarter. The management has revised its guidance on advance growth to 32-35% for FY11 as against earlier 25-30%. The bank NIM showed a decline of 40bps to 5.7% primarily due to higher cost of saving balances, higher CRR requirement, and increased proportion of low yielding corporate and secured retail loans. The bank added 13 branches during the quarter taking it to the total of 262 branches and plans to increase it to 320 by FY11 and to 500 by FY12.


   
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