InCred Equities - Kotak Mahindra Bank

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	283,418	303,721	353,946	419,163
Total Non-Interest Income (Rsm)	122,311	127,385	139,274	157,615
Operating Revenue (Rsm)	405,729	431,106	493,219	576,778
Total Provision Charges (Rsm)	(29,468)	(37,309)	(37,606)	(43,988)
Net Profit (Rsm)	137,201	141,282	165,882	199,198
Core EPS (Rs)	69.01	71.06	83.43	100.19
Core EPS Growth	0%	3%	17%	20%
FD Core P/E (x)	28.58	27.76	23.64	19.69
DPS (Rs)	2.50	2.15	2.52	3.03
Dividend Yield	0.13%	0.11%	0.13%	0.15%
BVPS (Rs)	589.7	658.2	739.5	837.2
P/BV (x)	3.34	3.00	2.67	2.36
ROE	12.8%	11.4%	11.9%	12.7%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income	283,418	303,721	353,946	419,163
Total Non-Interest Income	122,311	127,385	139,274	157,615
Operating Revenue	405,729	431,106	493,219	576,778
Total Non-Interest Expenses	(187,764)	(205,231)	(233,846)	(266,483)
Pre-provision Operating Profit	217,965	225,876	259,373	310,296
Total Provision Charges	(29,468)	(37,309)	(37,606)	(43,988)
Operating Profit After Provisions	188,497	188,566	221,768	266,307
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	188,497	188,566	221,768	266,307
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	188,497	188,566	221,768	266,307
Exceptional Items
Pre-tax Profit	188,497	188,566	221,768	266,307
Taxation	(51,296)	(47,284)	(55,885)	(67,109)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	137,201	141,282	165,882	199,198
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	137,201	141,282	165,882	199,198

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits	84.7%	86.0%	86.8%	87.5%
Avg Liquid Assets/Avg Assets	97.3%	97.2%	97.2%	97.1%
Avg Liquid Assets/Avg IEAs	110.4%	111.0%	111.3%	111.7%
Net Cust Loans/Assets
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans
Asset Risk Weighting
Provision Charge/Avg Cust Loans	0.73%	0.80%	0.69%	0.69%
Provision Charge/Avg Assets	0.46%	0.50%	0.44%	0.45%
Total Write Offs/Average Assets

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Gross Loans	4,269,092	5,003,308	5,852,486	6,845,790
Liquid Assets & Invst. (Current)	1,819,075	1,960,382	2,123,204	2,302,216
Other Int. Earning Assets
Total Gross Int. Earning Assets	6,088,167	6,963,690	7,975,690	9,148,006
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	6,088,167	6,963,690	7,975,690	9,148,006
Intangible Assets
Other Non-Interest Earning Assets	166,695	196,700	232,106	273,886
Total Non-Interest Earning Assets	190,284	222,648	260,649	305,282
Cash And Marketable Securities	657,792	776,476	917,451	1,085,053
Long-term Investments
Total Assets	6,936,242	7,962,814	9,153,790	10,538,340
Customer Interest-Bearing Liabilities	4,990,552	5,789,040	6,715,286	7,789,732
Bank Deposits
Interest Bearing Liabilities: Others
Total Interest-Bearing Liabilities	5,474,979	6,321,910	7,301,443	8,434,505
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	288,864	332,194	382,023	439,326
Total Liabilities	5,763,843	6,654,104	7,683,466	8,873,831
Shareholders Equity	1,172,399	1,308,710	1,470,324	1,664,509
Minority Interests
Total Equity	1,172,399	1,308,710	1,470,324	1,664,509

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	9.0%	7.2%	16.5%	18.4%
Operating Profit Growth	11.3%	3.6%	14.8%	19.6%
Pretax Profit Growth	5%	0%	18%	20%
Net Interest To Total Income	69.9%	70.5%	71.8%	72.7%
Cost Of Funds	4.80%	4.91%	4.82%	4.82%
Return On Interest Earning Assets	9.3%	9.1%	9.1%	9.3%
Net Interest Spread	4.49%	4.18%	4.31%	4.51%
Net Interest Margin (Avg Deposits)	5.98%	5.64%	5.66%	5.78%
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	14%	17%	14%	14%
Interest Return On Average Assets	4.38%	4.08%	4.14%	4.26%
Effective Tax Rate	27.2%	25.1%	25.2%	25.2%
Net Dividend Payout Ratio	3.6%	3.0%	3.0%	3.0%
Return On Average Assets	2.12%	1.90%	1.94%	2.02%

(91) 22 4161 1551 bhavik.shah@incredresearch.com

Market Data

Source: Bloomberg