Smart Disha Research & Algo

*Sharekhan Stock Idea - 3R Recommendation* *Kotak Mahindra Bank Ltd* Stable operating metrics and lower provisions propel PAT *Rating:BUY* (CMP: Rs. 381, Price Target: Rs.500) *Key Investment Arguments* • NII rose 9.2% y-o-y to Rs. 7,928 crore, slightly below estimates, adjusted NIMs were steady at 4.53% versus 4.54% q-o-q. • Fee income declined q-o-q but other income of Rs. 896 crore aided topline growth. • Sharp 44.7% y-o-y decline in provisions drove up PAT by 25.6% y-o-y to Rs. 4,123 crore, ~3.8% ahead of estimates. • Asset quality remained largely stable with GNPA ratio declining by 2 bps q-o-q to 1.18%, while NNPA ratio was up by 2 bps q-o-q to 0.27%. • Broadly stable results and expectations of steady return ratios, warrant that we maintain a Buy rating with an unchanged PT of Rs. 500