Company Update : Kotak Mahindra Bank by Motilal Oswal Financial Services Ltd
Robust business momentum |CD ratio rises to 87.5%
CASA ratio improves to 42.3%
KMB released its 2QFY26 business update. The following are the key takeaways:
* Net advances reported strong traction and grew 15.8% YoY/4.0% QoQ to INR4.63t (better than MOFSLe net advances of 14.6% YoY/2.9% QoQ).
* Average net advances surged 14.6% YoY/4% QoQ.
* Deposits (period-end) jumped 14.6% YoY/3.1% QoQ to INR5.29t. CASA deposits (period-end) surged 6.7% QoQ (up 11.2% YoY). The CASA ratio thus improved to 42.3% vs 40.9% in 1QFY26 (MOFSLe for deposits at 14.4% YoY/3% QoQ).
* Average deposits grew by 14.4% YoY/3.7% QoQ, while average CASA grew by 6.2% YoY/3.3% QoQ.
* KMB’s loan growth remained strong and better than our estimates, outpacing system growth, while deposit growth also stood healthy and broadly in line with our estimates. Hence, the bank’s CD ratio rose to 87.5% from 86.7% in 1QFY26.
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