MOSL: KOTAK MAHINDRA BANK (Neutral)-Growth moderates reflecting challenging macro; earnings outlook stable
KOTAK MAHINDRA BANK: Growth moderates reflecting challenging macro; earnings outlook stable
(KMB IN, Mkt Cap USD43.8b, CMP INR1629, TP INR1600, 2% Downside, Neutral)
** KMB reported 2QFY20 standalone PAT of INR17.2b (+51% YoY, 12% beat), supported by a lower tax outgo of INR3.7b (our estimate: INR5.7b), while PBT was in line with 21% YoY growth. Consol. PAT stood at INR24.1b (+38% YoY). For 1HFY20, standalone PPoP/PAT was up 19%/42% YoY to INR49.1b/INR30.8b.
** NII grew 25% YoY to INR33.5b (in-line), led by healthy margins of 4.6% (+12bp QoQ). Other income growth moderated to 1.6% YoY (at INR12.2b).
** Loan book grew 15% YoY to INR2.1t (v/s 17.6% YoY in 1QFY20), reflecting the slowdown in business banking/corporate banking and CV/CE portfolios. Excluding corporate/business banking, loan growth stood at 21% YoY.
Kotak Mahindra Bank is principally engaged in commercial banking activities. Co.'s services are provided through branch banking, telephone banking, internet banking, mobile banking, direct pay services, payment gateway for online shopping, a global debit card, a prepaid spending card and facility to transfer of funds to all Visa debit and credit cards in India. As of Mar 31 2007, Co.'s total assets and deposits was IRs286,308,094,000 and IRs96,609,722,000 respectively. In additions, Co. had 105 branches and 135 ATMs in 69 locations throughout India.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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