BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
Kotak Mahindra Bank Ltd.’s Q1 FY22 performance was relatively steady compared to the banking industry, with margin expansion and a slight increase in the delinquency rate to 297 basis points (annualised) compared to 248 bps in FY21.
Core fee income picked up but was below the pre-pandemic run-rate (in terms of fee income-average assets ratio).
The rise in establishment cost was mainly due to higher variable costs and an unfavourable base due to salary cuts taken by the top and senior management.
With elevated credit costs at 133 bps versus 92 bps in FY21, Kotak Mahindra Bank maintained provision coverage at 65% – similar to the pre-pandemic level.
It did not utilise Covid-19 related contingent provisions (of Rs 12.8 billion, 106 bps of loans).
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.