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Below is quote on Kotak Mahindra Bank Q1FY22 results by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

Kotak Mahindra Bank reported a 5.9% YoY increase in Net interest income to Rs. 3,942 crore while other income for the quarter was up by 104.5% yoy at Rs. 1,583 crore. fee and services income registered a healthy growth of 50.6% yoy as a result of which total income was up by 22.9% yoy to Rs. 5525 crore. Operating expenses were up by 28.3% yoy while Pre provisioning profits for the quarter was up by 18.9% yoy to Rs. 3,121 crore. Provision for the quarter was down by 27.1% YoY to Rs.1,145 crore while the bank reported a profit of Rs. 1,642 crore up by 32.0% yoy. NII growth was driven by advances growth of 6.6% yoy while deposits registered a growth of 9.6% yoy. CASA deposits accretion remained robust and was up 16.2% yoy while CASA ratio improved by 345bps yoy to 60.2%. Asset quality deteriorated marginally with GNPA and NNPA up to 3.56% and 1.28% of advances as compared to 3.25% and 1.21% of advances in Q4FY21. Overall Axis bank posted a solid set of numbers especially in the backdrop of the second Covid wave. While we remain confident of the future growth prospects of the company we have a neutral rating on the bank given premium valuations.

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