Private Banking – Kotak Mahindra Bank Ltd.

Sector: Banking - Company: Kotak Mahindra Bank Ltd.

was highlighted in the 26 October stock-market news flow as a company to watch following its quarterly results and banking-sector developments. For investors, the important factors include deposit growth, loan growth, net interest margin, slippages, credit costs and provisions. Bank results can reveal whether business expansion is being achieved without compromising asset quality. Investors should also compare performance against previous quarters and the same quarter of the previous financial year. Learning point: A bank's profit growth should always be analysed together with asset quality, funding costs and capital adequacy.