CLSA on Kotak Bk ; O-P, TP Rs 485

PAT was largely in line with estimates, adjusted for several FCNR-related one-offs, it was a marginal beat This was primarily driven by stronger-than-expected loan growth. Pursuant to RBI’s directives, Kotak acquired Rs96bn of loan assets from its subsidiary, KMIL, in quarter. Organic customer asset growth, ex of FCNR self-leverage, picked up from 16% YoY in the prior quarter to 18% YoY in 2QFY27. While growth continues to be driven more by corporate and SME lending, there was a pickup in unsecured retail credit. Reported NIM declined c.20bp QoQ, largely due to the FCNR inflows of c.Rs550bn. Core fee income growth improved to 15% YoY from 11% in the prior quarter and single-digit growth earlier

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