Kotak Mahindra Bank, India’s third-largest private bank, is likely to report a 9-11% growth in its earnings from interest in the last three months of 2024. Experts believe that the bank’s earnings from interest (known as net interest income or NII) could reach between Rs 7,140 crore and Rs 7,251 crore.
The bank’s profit is also anticipated to grow by around 9-11.3%, with estimates suggesting it could be between Rs 3,268 crore and Rs 3,345 crore. These predictions come from four financial research companies: Nomura, Citi, Emkay Research, and Elara Capital.
However, the bank’s net interest margin (NIM)—which shows how well it makes money from the difference between what it pays for deposits and what it earns from loans—might drop. This is happening because of a weaker CASA (Current Account Savings Account) ratio.
Experts say that the bank will have to set aside more money for bad loans because of rising unpaid loans in unsecured categories like retail and microfinance. Kotak will reveal its quarterly earning report on Saturday, January 18.
Brokerage Predictions:
– Nomura: Predicts NII will grow by 9%, reaching Rs 7,140 crore. Profit might be around Rs 3,340 crore, up 11% from last year. They expect the NIM to drop to 4.9%.
– Citi: Expects NII to be Rs 7,133 crore, an increase of 9%. However, profit could drop 2% from last quarter to Rs 3,268 crore.
– Emkay Research: Sees NII hitting Rs 7,251 crore, with profit possibly at Rs 3,345 crore.
– Elara Capital: Projects NII at Rs 7,175 crore, with a 11% profit increase to Rs 3,329 crore.
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