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Kotak Mahindra Q4 earnings: Prakash Diwan says sub optimal NII a cause of concern on valuations

Updated : May 03, 2021 03:45:39 IST

Kotak Mahindra Bank Q4FY21 net profits are below estimates at Rs 1,682 crore. Asset quality too has deteriorated and the gross NPA stands at 1.21 percent versus 0.5 percent quarter-on-quarter (QoQ).

Reacting to Kotak Mahindra Bank’s Q4FY21 numbers, market expert Prakash Diwan said that the headline number is disappointing. He said that more than the quality of assets, lack of growth has been the concern.

He also said that sub optimal NII is going to cause concern on the valuations.

“The bank has been fairly conservative and I am sure the provisioning number will also be about 2.5-3x of what they did last year given the fact that there is a lot of bundling of NPAs that tends to happen in this quarter. But my sense is that market might not accept very rich valuations if the growth is going to be so tepid. So, I think a sub optimal NII which is going to cause a little bit of a concern on the valuations,” he said in an interview to CNBC-TV18.

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