There was a 9% jump in the Nifty Bank Index in the last year, however, the shares of Kotak Mahindra Bank were almost flat. The bank’s Q4 results have managed to impress the street on a few counts with discussions shifting away from loan growth to deposit accretion.
The private sector lender on Wednesday reported a 65% spike in its standalone profit after tax at ₹ 2767 crores for the March quarter. This was on the back of higher growth in net interest income and healthy asset quality. It had reported a PAT of 1682 crores during the same period a year ago.
It reported a Consolidated Total Income of ₹ 16794.19 crores, up 18.47% from ₹ 14176.16 crores during the same period last year. It reported a net profit after tax of Rs 3891.82 Crore in the latest quarter.
“If you look at our Q4 numbers, our slippages have been extremely under control. On an annualised basis our slippage ratio is 1.08 per cent. Our slippage ratio actually now demonstrates that the quality of our credit book is extremely robust as we exit Covid,” said Uday Kotak, the bank’s Managing director and CEO.
LKP Securities has a buy call on the shares of Kotak Mahindra Bank with a target price of ₹ 2266 achievable in one year. The shares are currently trading at ₹ 1,779.45 levels. This indicates an upside of 27.34%.
This means that if ₹1,00,000 is invested in the share at the current market price, chances are that in the next one year, the value of the holdings will be ₹ 1,27,340!
Kotak Mahindra Bank is a large-cap stock with a market capitalization of over ₹ 3.54 lakh crores. Some of its key products and revenue segments include interest & discount on advances & bills, income from investment, interest on balances with RBI and other inter-bank funds and interest.
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