Private sector lender Kotak Mahindra Bank, which will release earnings on Saturday, is likely to report double-digit growth in net interest income (NII) for the fourth quarter that ended on March 31, 2023-. However, growth in the bottomline will likely be in single digits due to high base effect.

Share Market Live

NSE

The lender is expected to report a net profit of Rs 2925.7 crore, up 7 percent for Q4FY23 and 30-35 percent year-on-year increase in NII, according to analysts.

Shares of Kotak Mahindra Bank settled 1.48 percent higher at Rs 1,937.70 apiece on BSE in Friday's trade. The stock has fared far better on a year-to-date basis when compared to peers like HDFC Bank, ICICI Bank and Axis Bank.

KMB shares have gained 6 percent so far in 2023, whereas HDFC Bank and ICICI Bank have risen 3.6 and 1.6 percent, respectively. Meanwhile, Axis Bank shares have given negative returns.

On April 28, ICICI Direct had a 'Buy' call on Kotak Bank with a target price of Rs 1936. Time period given by analyst is 'Intra Day' when Kotak Mahindra Bank price can reach defined target. ICICI Direct recommended to keep stop loss at Rs 1,894.

Brokerages on Kotak Q4FY24 numbers

Prabhudas Lilladher expects the private sector bank to report a 3.4 percent rise in net profit at Rs. 2,777.4 crore over the last year, as against a 0.5 percent fall over the December quarter. NII may rise 35.1 percent on-year and 6.1 percent QoQ to Rs. 5,998.8 crore.

Kotak's loan traction has been strong and the brokerage expects the momentum to continue and build-in 21 percent YoY and 5.6 percent QoQ growth.

Credit cost would remain in the same range with PCR near to 78 percent. CASA accretion to slow down further, hence, margins would see only marginal improvement.

Phillip Capital expects KMB to post 7.2 percent YoY rise in net profit at Rs 2,965.50 crore as against Rs 2,767.40 crore in the same quarter last year. NII is seen increasing 29.6 per cent YoY to Rs 5,858.30 crore for the quarter from Rs 4,521.40 crore in the corresponding quarter last year. NIM is seen falling to 5.37 per cent from 5.47 per cent in the previous quarter.

Emkay Global expect margins to decline on a sequential basis, which coupled with slightly higher opex should hurt profitability. Slippages are expected to be similar to Q2 levels.

ICICI Direct expects KMB's net profit to rise 7.9 percent YoY and 6.9 percent QoQ to Rs. 2,984.8 crore. NII is expected to increase by 31.5 percent YoY and 5.2 percent QoQ to Rs 5,946.7 crore. PPOP or Pre-provision operating profit is expected to increase by 24.1 percent over the last year and 7.7 percent over the last quarter to Rs 4,144.5 crore.

Motilal Oswal sees Kotak's net profit at Rs 3,014.9 crore, up 8.9 percent YoY and 8 percent QoQ. It expects a 33.1 percent jump in NII over the last year and 6.4 percent over the last quarter to Rs 6,015.9 crore. The brokerage house pegged the PPOP up 26.9 percent YoY and 10.1 percent QoQ to Rs. 4,239.5 crore.