Kotak again proved with today’s results that its ins on not bothering to reinvent themselves have been playing to the old Goldman Sachs gallery and not really going anywhere on the business learning curve. Couple that with another likely two year holiday till it starts to wind down promoter stakes and it is ripe for an Ingovern/Veritas hit which its strong fundamentals can resist easily. Private Equity must be thinking of the prospects of buying this 50% promoter stake daily but seem to have no partnership basis with Uday Kotak
A true smaller range was never ever found again!
Net Interest Income is reaching a degree of scale at INR 7.20 B and the Net NPAs are as suspected rising as it akes out of its existing customer set and splashes a little likely to recede again. One wonders if someone can really revamp that governing structure in place, each manager at his island of incompetence with the HCL GPS device in hand
NIMs are its strength at 4.7% Gross Lending income (only Interest) is up to INR 24.7 B (DJ wires)
Back to the banks then, Kotak having totted up Gross NPAs to 1.4% and NIMs saddening to 4.7% now at 33% higher than the Industry highs of 3.5% among Private and Public sector banks. Anyone who can get a more than 20% credit growth in their conservative forward statements is a shoo in into any decently managed portfolio as the midday correction on sales growth to INR7.2 B definitely brings in Kotak to a short list. Net Profits of the group were INR 2824 M and I would like them to scale a mark of a 1 B in profits every quarter so the growth in advances and the 7% campaign’s impact on CASA are welcome. CASA is now 22% Advances and Depsits grew more than 30%
- Bank Results season: Kotak bank back in the mix with 33% PAT growth (awardz.wordpress.com)
- India Earnings Season (Bank Results Season): Kotak does operate in a saturated market segment of its own (awardz.wordpress.com)