Company Update : Kotak Mahindra Bank by Motilal Oswal Financial Services Ltd
Strong advances (beat) and deposit growth (beat) aided by FCNR(B) flows; CASA mix declines
* Net advances grew 24.7% YoY/12.7% QoQ to INR5.77t (major beat vs. our estimated growth of 19.4% YoY/7.9% QoQ). Average net advances grew by 22.1% YoY/10.5% QoQ.
* Deposits (period-end) grew 23.2% YoY/13.7% QoQ to INR6.51t (major beat vs. our estimated growth of 17.5% YoY/8.4% QoQ). CASA deposits (period-end) grew by 7.8% QoQ (up 11.3% YoY). CASA ratio thus declined to 38.2% from 40.3% in 1QFY27. Average deposits grew by 18.8% YoY/8.5% QoQ, while average CASA grew by 14.2% YoY/4.4% QoQ.
* FCNR(B) deposits totaled USD5.78b (INR0.55t), while leverage provided against the same was USD1.68b (INR0.16t). Excluding FCNR(B) deposits and leverage against the same, loan growth was 21.2% YoY/9.5% QoQ and deposit growth was 12.7% YoY/4.1% QoQ.
* KMB’s loan and deposit growth were higher than MOFSLe, while there was a sharp decline in CASA mix. CD ratio declined to 88.6% vs. 89.4% in 1QFY27.
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