Major Support for Kotak Bank after Q1 Result

Financial Performance Standalone net profit of ₹3,282 crore, down 7% year-on-year on an adjusted basis. Net interest income at ₹7,259 crore, up 6% YoY. Net interest margin stood at 4.65%. Provisions and contingencies surged 109% YoY to ₹1,208 crore. Credit Growth and Asset Quality Advances grew 14% YoY to ₹4,44,823 crore; customer assets rose 13% YoY to ₹4,92,972 crore. Gross non-performing assets at 1.48% versus 1.39% a year ago; net NPA steady at 0.34%. Slippages jumped to 1.9% of loans for the quarter. CASA ratio declined to 40.9% from 43.4% YoY. Capital, Efficiency & Profitability Ratios Capital adequacy ratio at 23%; CET-I ratio at 22.4%—well above regulatory norms. Cost-to-income ratio remained elevated at 46.19%. Return on equity moderated to 10.94% from 13.91% YoY. Management Commentary Microfinance-portfolio stress likely peaked in Q1; credit costs expected to ease from Q2 as asset quality stabilises. Major Support at 2000 from which Kotak Bank is able to hold and expecting an up move and if such level breaks then it may face a bottom of 1900.