Kosaku Naruoka
Kotak Mahindra Bank Ltd. will report its third quarter results on Saturday. Here’s what you should know:
Net Profit Forecast: Kotak Mahindra Bank increased its net profit by 2.9% to INR 35.01 billion ($430.9 million) for the quarter ended December 31, according to an analyst poll by Visible Alpha is expected to be This compares with a net profit of INR 34.03 billion in the same period last year.
What to watch:
— Lending Quality: Investors look for signs that asset quality is declining as interest rates rise. Kotak Mahindra’s ratio of total non-performing assets to total loans declined to 2.09% in the second quarter from 3.16% in the same period last year.
— Loan growth: Customer assets, mainly prepayments, increased by 25% year-on-year to INR 3.213 trillion at the end of September. Investors are watching the pace of loan growth closely.
— Segment Performance: Q2 Profit from Kotak Mahindra’s Corporate and Wholesale Banking Business increased to INR 17.74 billion from INR 16.22 billion in the same period last year, with Retail Banking profit of INR 1 increased from INR 36.1 million to INR 5.81 billion. Investors focus on the performance of key segments.
Please contact kosaku Narioka at kosaku.narioka@wsj.com.
