Kotak Bank Stocks: Kotak Mahindra Bank shares are seeing a sharp rise today after the results of the second quarter of FY 2021. In today’s business, Kotak Bank is up about 7 percent and it has reached the price of Rs 1515. The stock closed at Rs 1416 on Monday. Kotak Bank has produced great results in the second quarter, due to which the brokerage has also given positive opinion about the stock. After which the sentiment of investors regarding the stock has strengthened. Most brokerage houses have advised to buy the stock.
Good morning forecast in the coming days
Brokerage house Motilal Oswal says the second quarter has been better for Kotak Mahindra Bank. The provisioning of the bank has come down, along with the asset quality has improved. There has also been an improvement in CASA ratio. Bank’s base base is strong and the country also has a strong network, which is benefiting from it. However, loan growth has remained flat due to weak macro environment. But it is expected to improve further. Bank’s margins also grew in the second quarter. We estimate FY21 / FY22 earnings growth to be 27% / 20%.
Brokerage house CLSA says that Kotak Bank has outperformed the all-round in the second quarter. The bank is continuously reducing its bad loans, due to which the asset quality has improved. The collection is also going to the pre covid level. The bank is working on increasing its franchise. Bank earnings are projected to grow from 19 to 26 per cent from FY21 to FY23.
What is advice on investment?
Target: Rs 1600
Target: Rs 1650
Target: Rs 1700
Target: Rs 1570
How were the results of the bank?
Kotak Mahindra Bank’s profit in the second quarter of FY 2021 increased by 27 per cent year-on-year to Rs 2184 crore. Interest income has increased by 16.8 percent. On a quarterly basis, the provisioning of the bank has been reduced from Rs 962 crore to Rs 368.6 crore. However, the loan book decreased by 4 percent during the second quarter. 2.04 lakh crore in the second quarter. Net interest margin grew by 12.2 percent on an annual basis from 4.61 percent of deposits and 2.61 lakh crore in the second quarter.
In the second quarter, the bank’s gross NPA was down to 2.55 percent from 2.70 percent in the previous quarter. At the same time, the net NPA has come down from 0.87 per cent to 0.64 per cent in the previous quarter. The bank’s new NPAs (slippages) in the second quarter have been reduced to Rs 264 from Rs 796 crore in the previous quarter. In rupee terms, the net NPA of the bank decreased from Rs 1,777.1 crore in the second quarter to Rs 1,303.8 crore on a quarterly basis. At the same time, the gross NPA has been reduced from Rs 5,619.3 crore to Rs 5,336 crore.
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