{"id":32,"date":"2019-08-05T08:45:30","date_gmt":"2019-08-05T08:45:30","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=32"},"modified":"2019-10-04T05:19:07","modified_gmt":"2019-10-04T05:19:07","slug":"kotak-mahindra-bank-kmb-standalone-1qfy20-moderation-in-advances-growth-stable-asset-quality","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/08\/05\/kotak-mahindra-bank-kmb-standalone-1qfy20-moderation-in-advances-growth-stable-asset-quality\/","title":{"rendered":"Kotak Mahindra Bank (KMB standalone) 1QFY20"},"content":{"rendered":"\n<p>Kotak Mahindra Bank (KMB standalone) 1QFY20: Moderation in Advances growth, stable asset quality<\/p>\n\n\n\n<ul><li>KMB reported advances at Rs 2,080 bn, 18% higher YoY. <\/li><li>NII at Rs 31,730 mn was 23% higher YoY. <\/li><li>NIM for 1QFY20 was 4.49% compared to 4.28% in 1QFY19.<\/li><li>Provisions were Rs 3,168 mn, 33% lower YoY. <\/li><li>PAT at Rs 13,602 mn was 33% higher YoY<\/li><li>GNPA and NNPA were relatively flat at 2.19% and 0.73% respectively for 1QFY20 compared to 2.14% and 0.75% respectively in 4QFY19.<\/li><\/ul>\n\n\n\n<p>Management commentary:<\/p>\n\n\n\n<ul><li>Advances growth in corporate and business banking segments has been low. Consumer and commercial advances have reported strong growth of 20%+ in FY20.<\/li><li>Management expects to continue around 20% growth in advances.<\/li><li>NIM expansion is likely due to pricing power and lower cost of funds.<\/li><li>Interest rate on Savings accounts below Rs 1 lac is reduced to 4% from 5% earlier. Benefit of the rate reduction will reflect in 2QFY20.<\/li><li>Provision for retirement benefit has been significantly higher YoY due to lower interest rates.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: marketscreener website)<br>\u2022 The stock price was Rs 1,494\/- on 23<sup>rd<\/sup>&nbsp;July 2019 and traded at 5.8x\/3.7x &nbsp;the consensus Book value for FY20E\/21E of Rs 258\/404 &nbsp;respectively.&nbsp;<br>\u2022 Consensus target price is Rs 1,499\/- implying PB of 3.7x for FY21E BVPS of Rs. 404\/-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kotak Mahindra Bank (KMB standalone) 1QFY20: Moderation in Advances growth, stable asset quality KMB reported advances at Rs 2,080 bn, 18% higher YoY. NII at Rs 31,730 mn was 23% higher YoY. NIM for 1QFY20 was 4.49% compared to 4.28% in 1QFY19. Provisions were Rs 3,168 mn, 33% lower YoY. PAT at Rs 13,602 mn [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,55],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/32"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=32"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/32\/revisions"}],"predecessor-version":[{"id":47,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/32\/revisions\/47"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=32"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=32"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=32"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}