Will Kotak Mahindra Bank shine again this Q3?

Kotak Mahindra Bank (KMB) is set to announce its third quarter ended December 31, 2017 results on Tuesday January 24, 2017. 

Shares of the bank were trading at Rs 736.50 per share on BSE Sensex, higher by Rs 5.65 or 0.77% at 11:30 am. 

Motilal Oswal report estimates KMB to report net interest income (NII) of Rs 2,021.3 crore, up 14.4% yoy and profit after tax (PAT) at Rs 804.9 crore, an increase of 26.8% yoy. 

Analysts at Motilal Oswal said, "We expect the standalone bank to report more than 10% loan growth and 11% deposit growth in 3QFY17. NIMs are expected to decline marginally by 10 basis point QoQ, but improve 10 basis point yoy." 

They added, "With strong customer acquisition and merger synergies from eIVBL (ING Vysya Bank), fee growth should remain healthy. Traction on CASA should pick up considerably post demonetization, leading to incrementally lower cost of funds."

On asset quality Motilal feels it will remain stable with gross non-performing assets (GNPA) less that 2.5%. 

Motilal explained that key issue to watch for Kotak will be guidance on balance sheet growth and performance of non-banking subsidiaries and their contribution to overall profit.
 

During its last quarter, Kotak Mahindra Bank reported a whopping 43% year-on-year growth at Rs 813.3 crore compared to previous year.