Kotak Mahindra Bank is expected to report its June-quarter financial results on Monday and the Street is anticipating the highest profit growth in last nine quarters. Analysts believe sustaining the net interest margin (NIM) above 4.2 percent will be positive for the stock. In the last quarter, it was at 4.48 percent, perhaps a 16 quarter hike on NIMs.
Loan growth momentum above 20 percent should be positive, they said. In the Q4, it was at 21.2 percent and for seven quarters in a row, Kotak Mahindra Bank has been growing its book at north of 20 percent.
The fee income should remain strong for the bank not only on account of loan growth but also digital penetration. The low-cost deposits flow needs to be watched very closely. It is the highest in the sector for Kotak Mahindra Bank at 52.5 percent.
Gross non-performing assets (NPA) below 2.25 percent will be positive.
CNBC-TV18’s poll suggests net interest income (NII) growth of 22.5 percent while net profit can grow above 35 percent and perhaps the highest in the last nine quarters.