Kotak Mahindra Bank Q2 Results: NII, net profit may see marginal growth in July-September quarter 

Kotak Mahindra Bank Q2 Results: NII, net profit may see marginal growth in July-September quarter 

Kotak Mahindra Bank is set to release its second-quarter results on Saturday, October 19th. Analysts are predicting positive growth for the third largest private lender in key financial areas compared to the previous year. It is expected that Kotak Mahindra Bank will see an increase in net interest income (NII) of 9.6% to 13% for the quarter ending on September 30, 2024. The NII is forecasted to fall within the range of Rs 6,898 crore to Rs 7,122 crore, driven by a strong double-digit growth in loans.

Estimates suggest that the profit after tax (PAT) for Kotak Bank in this quarter could range from Rs 3,058 crore to Rs 3,588 crore, indicating a potential net profit growth of up to 12.4% year-on-year.

In the first quarter of fiscal year 2025, Kotak Mahindra Bank saw a substantial increase in net profit, reaching Rs 6,249 crore, marking an 81% growth from the same period in the previous year when it was Rs 3,452.3 crore. The boost in profit was primarily attributed to the successful sale of its stake in Kotak General Insurance to Zurich Insurance group. Moreover, the bank's net interest income (NII) for the June quarter also witnessed a rise of approximately 10%, reaching Rs 6,842 crore, showcasing the bank's strong performance as a leading private lender.

What are analysts expecting:

Nomura

Nomura is anticipating a Net Interest Income (NII) of Rs 7,000 crore for the upcoming period, representing an expected 11% increase year-over-year and a 2% increase quarter-over-quarter. Profit After Tax (PAT) is projected to experience a 7% year-over-year growth to Rs 3,410 crore, but a significant 45% decrease from the previous quarter.

Kotak Bank is forecasted to achieve a net interest margin (NIM) of 4.9% in the forthcoming quarter, indicating a 28 bps decline year-over-year and an 8 bps decline quarter-over-quarter.

Pre-Provision Operating Profit (PPoP) is expected to rise by 13% year-over-year to Rs 5,210 crore, with a marginal 1% decrease quarter-over-quarter.

Provisions for the company are likely to increase by 80% year-over-year and 14% quarter-over-quarter to reach Rs 660 crore.

PhillipCapital

The Net Interest Income (NII) is projected to increase by 11% Year-over-Year (YoY) and 2% Quarter-over-Quarter (QoQ) to reach Rs 6,964 crore, while Profit After Tax (PAT) is estimated to rise by 6.7% YoY to Rs 3,405 crore but is predicted to decline by 3.3% on a QoQ basis.

Net Interest Margin (NIM) is anticipated to rise by 22 basis points to 5% compared to the same quarter of the previous fiscal year.

Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to be approximately Rs 5,200 crore, reflecting a 13% YoY increase and a 1% QoQ decrease.

JM Financial

JM Financial is anticipated to achieve NII figures of Rs 7,122 crore, representing a projected increase of 13% year-over-year and 4% quarter-over-quarter. The net profit is expected to rise by 12% year-over-year and 2% quarter-over-quarter, reaching Rs 3,588 crore.

PPOP is forecasted to reach Rs 5,481 crore, showing a growth of 19% year-over-year and 4.3% quarter-over-quarter.

The private sector lender is projected to observe a 17% year-over-year and 4.5% quarter-over-quarter increase in loans, reaching Rs 4,07,505 crore as of September 30, 2024. Additionally, deposits are expected to rise by 16% year-over-year and 4% quarter-over-quarter to Rs 4,65,315 crore.