Kotak Bank: 895-910 May Be A Big Hurdle Despite “Animal Spirit” For Inorganic Growth; At TTM PE Of 35, The Stock May Be Quite Expensive Against Its Average PE Of 25

10/04/2017 (20:00)

Trading Idea: KMB

LTP: 877

Sell on rise around: 895-910

TGT: 845-830 & 790-770 and 720-690 (1-3 & 6M)

TSL> 915 OR > 925

Note: Consecutive closing above 925 area, KMB may further rally towards 945-975 & 1000-1015 & 1045-1080 in the near to long term (FY: 18-19). Anyone having long position in the stock may also watch the 845-830 zone as positional support.

As the valuation multiple is currently quite stretched at around PE of 35 (Q3FY17 TTM) in comparison to its average PE multiple of 25, investors may wait for some dips before fresh buying.

Investment Idea: KMB

LTP: 873

Buy/accumulate on dips around: 770-720

TGT: 905-975 & 1015-1045 and 1080 (12-24M/FY: 18-19)

Valuation metrics for KMB (Cons):

ACTUAL Q3FY17 EPS	6.88
ACTUAL TTM Q3FY17 EPS	24.96
PROJECTED Q4FY17 EPS	7.56
PROJCTED FY-17 EPS	26.78
PROJECTED Q1FY18 EPS	8.3
PROJECTED TTM Q1FY18 EPS	29.28
PROJECTED FY-18 EPS	30.3

Average/median PE: 25

Average CAGR in EBITDA: 21%

Projected CAGR in EBITDA (FY: 18-19): 33%

Average CAGR in EPS: 25% (Adjusted EQ dilution for ING merger)

Projected CAGR in EPS: 23% (without factoring for latest 3.3% EQ dilution and probable further fund raising/EQ dilution)

As par current & implied run rate & average PE of 25, median fair valuation of KMB may be:

Actual Q3FY17 TTM: 625

Projected FY-17: 670

Projected FY-18: 760

Valuation Metrics	Q3FY17	FY-17E	Q1FY18E	FY-18E
TTM EPS	24.96	26.78	29.28	30.3
MEDIAN PE	25	25	25	25
MEDIAN FAIR VALUE	624.00	669.50	732.00	757.50

If KMB can deliver an actual CAGR of 30-35% in EPS in FY: 17-19 consistently, then market may assign it 30 PE for the long term average, depending upon the management guidance & any big inorganic expansion, such as Axis Bank or KTK as par recent market buzz and in that scenario, projected FY: 18-19 median valuation may be around 910-1060 (EPS: 30.30 * 30/35); although such big inorganic expansion may be usually not good for KMB scrip, at least for the short term (depending upon the actual M&A details, if happens at all).

Analysts estimates for EPS of KMB:

ANALYST PROJECTION (EPS)	FY-17	FY18
MOSL	26.3	32.3
FT/REUTERS	22.3	28.13
MEDIAN EPS(CONSENSUS)	24.30	30.22
MEDIAN PE	25	25
MEDIAN VALUE (CONSENSUS)	607.50	755.38

KMB Financials: QLY

KOTAK BANK-CONS-Q3FY17	Dec '16	Sep '16	Jun '16	Mar '16	Dec '15	YOY	QOQ	AVG	AVGR	SGR	PROJ(%)	Q4FY17	Q1FY18
Interest Earned
(a) Int. /Disc. on Adv/Bills	4,228.47	4,140.18	4,056.95	3,978.38	3,917.17	7.95	2.13	4023.17	5.10	1.92	2.79	4346.30	4467.42
(b) Income on Investment	1,239.36	1,232.44	1,220.99	1,178.10	1,090.08	13.69	0.56	1180.40	4.99	3.15	3.03	1276.95	1315.68
(c) Int. on balances With RBI	62.68	29.52	34.5	55.68	25.51	145.71	112.33	36.30	72.66	28.51	62.48	101.84	165.48
(d) Others	135.56	131.51	157.29	105.3	112.97	20.00	3.08	126.77	6.94	7.19	5.55	143.09	151.03
INTEREST INCOME	5,666.07	5,533.65	5,469.73	5,317.46	5,145.73	10.11	2.39	5366.64	5.58	2.41	3.23	5849.00	6037.84
Other Income	2,003.97	2,881.30	2,397.15	2,592.95	1,804.68	11.04	-30.45	2419.02	-17.16	3.15	-10.42	1795.07	1607.95
TOTAL REVENUE	7,670.04	8,414.95	7,866.88	7,910.41	6,950.41	10.35	-8.85	7785.66	-1.49	2.43	-1.33	7567.96	7467.23
EXPENDITURE
Interest Expended	2,919.02	2,869.44	2,904.00	2,850.52	2,775.74	5.16	1.73	2849.93	2.42	1.26	1.68	2967.93	3017.66
Employees Cost	993.61	1,013.77	951.46	926.68	874.62	13.60	-1.99	941.63	5.52	3.21	2.54	1018.81	1044.65
Other Expenses	1,678.20	2,533.62	2,173.56	2,422.15	1,622.77	3.42	-33.76	2188.03	-23.30	1.39	-13.71	1448.19	1249.70
OPEX	5,590.83	6,416.83	6,029.02	6,199.35	5,273.13	6.02	-12.87	5979.58	-6.50	1.44	-4.11	5361.20	5141.00
EBITDA	2,079.21	1,998.12	1,837.86	1,711.06	1,677.28	23.96	4.06	1806.08	15.12	5.54	7.68	2238.86	2410.76
Depreciation	0	0	0	0	0	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
EBITA	2,079.21	1,998.12	1,837.86	1,711.06	1,677.28	23.96	4.06	1806.08	15.12	5.54	7.68	2238.86	2410.76
Provisions And Contingencies	217.81	217.93	213.57	211.98	261.02	-16.55	-0.06	226.13	-3.68	-5.10	-3.24	210.75	203.91
Exceptional Items	0	0	0	0	0	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
PBT	1,861.40	1,780.19	1,624.29	1,499.08	1,416.26	31.43	4.56	1579.96	17.81	7.01	9.31	2034.71	2224.15
Tax	611.46	585.23	541.49	442.49	477.95	27.93	4.48	511.79	19.47	6.73	9.42	669.04	732.05
PAT	1,249.94	1,194.96	1,082.80	1,056.59	938.31	33.21	4.60	1068.17	17.02	7.16	9.27	1365.81	1492.42
Minority Interest	-17.62	-16.31	-18.56	-19.93	-15.49	13.75	8.03	-17.57	0.27	2.83	3.64	-18.26	-18.93
Share Of P/L Of Associates	34.27	23.75	2.86	18.57	22.34	53.40	44.29	16.88	103.02	167.45	82.03	62.38	113.55
Net P/L After M.I & Associates	1,266.59	1,202.40	1,067.10	1,055.23	945.16	34.01	5.34	1067.47	18.65	7.39	9.97	1392.89	1531.79
Equity Share Capital	919.63	918.64	917.79	917.19	916.25	0.37	0.11	917.47	0.24	0.09	0.13	920.84	922.06
EPS	6.89	6.54	5.81	5.75	5.16	33.52	5.23	5.82	18.38	7.30	9.82	7.56	8.31
EPS After Extra Ordinary
Basic EPS	6.89	6.55	5.82	5.76	5.16	33.53	5.19	5.82	18.33	7.30	9.80	7.57	8.31
Diluted EPS	6.88	6.54	5.8	5.74	5.15	33.59	5.20	5.81	18.47	7.32	9.85	7.56	8.30
TTM EPS	24.96	23.23										26.78	29.28
AVERAGE PE	25	25										25	25
MEDIAN VALUATION	624.00	580.75										669.44	731.97
BVPS	201.4	194.3	187.6	181.9	176.5	14.11	3.65	185.08	8.82	3.33	4.83	211.13	221.34
AVG P/B	3.25	3.25	3.25	3.25	3.25							3.25	3.25
MEDIAN VALUATION	654.55	631.48	609.70	591.18	573.63							686.19	719.35

KMB was in the limelight recently after speculation of various M&A targets and expression of “animal spirit” by the management for more growth (organic or inorganic) & private investments not only for itself, but for all the eligible corporates (quality investors). Apparently, after huge win of BJP in the recent state elections (UP), the KMB management seemed to regain its confidence & faith on the Indian economy and the incremental reform process (Modinomics) as with other big angel investors and called for “animal spirit” by the Indian corporates/investors and also called for some “signal” by the Govt to kick start the economy, revival of private investments and ability to take some risks by the private investors.

But FM, on his part was apparently cool and maintained that, Govt has already giving “various signals” over the years and investors need to understand that; perhaps the Govt is taking a cautious stance keeping in mind some greed of corporate Indian in the boom period of pre-2008 (pre-recession) & 2010-12, when some of the corporates want to grow fast by irrational exuberance of huge expansion or unrelated diversification by taking huge debt; thus causing the problem of “twin balance sheet” as now. But, of course Kotak group (KMB) is an exception like few others corporate groups with very deep pocket, good debt profile, excellent professional management and a business model with consistent earnings visibility.

For such display of “animal spirit” & KMB’s recent fund raising plan of Rs.5300 cr, market was abuzz with various probable M&A speculations ranging from Axis Bank, KTK Bank, Bharat Fin, M&A Fin etc (the list was long !!). But, eventually nothing was happened; KMB has apparently raising further EQ capital and thereby diluting it by around 3.3% to reduce the promoter shareholding gradually as par RBI directive and to also fund its ARC subsidiary.

Although, KMB is clearly interested for Axis Bank due to variety of reasons, such as operational synergy, dilution of promoter holdings in the merged entity & corporate loan book. Govt may be also eager to sell/dilute its SUUTI stake (11.7%) in Axis Bank in FY-18 to meet its disinvestment target and KMB may be waiting for that opportunity. Axis Bank may be on the dock (sale list), because of failure of the present management to contain its stressed assets and also for various ongoing cases against some of its employees at different branches involving DeMo related currency notes exchange/conversion allegations under PMLA; Govt may also ensure a management change in the Axis Bank.

As par KMB management, going forward, like in telecom industry, there may be only five big banks for India (SBI, ICICI, HDFC, Axis/Merged entity and IIB/Yes/Kotak) and KMB may be one of them. KMB might be right as India is not a place of so many banks, now around 30 (?) and a wave of consolidation may be coming in the months/quarters ahead, in which entities with a very deep pocket may only survive like in telecoms.

Apart from the above mentioned 6 private banks & SBI, most of the other PSBS may also be merged into BOB & PNB. Thus, Indian banking system may be consolidated into 5-6 major private banks & 3-4 major PSBS group. KMB may be preparing itself for a big banking role and may be also eyeing the corporate loan books growth as the traditional corporate lenders (PSBS) and also its private peers (ICICI/Axis) are now stressed itself and may not be in a position to resume corporate lending in a big way, when such demand again came back. Such stressed banks need to raise sufficient capitals and also need to resolute their NPA issues properly.

Thus KMB has raising capital for pursuing such consolidation (M&A) opportunities (inorganic growth), role as a big ARC or even participation of a Govt sponsored/PPP mode “bad bank” to acquire & resolute stressed assets/NPA, organic growth opportunities and digital banking expansion (like recently launched “811” –digital mode of opening an instant limited or no frill bank A/C with only limited KYC-Pan/UID at lower costs).

KMB has also strengthen its ARC ARM by infusing further capital of around Rs.1200 cr and it may play a big role of a “Super ARC”, which may be now only suitable for players having very deep pocket and can withstand the gestation period to revitalize or resolute a stressed assets.

The major problem of huge stressed assets in the Indian Banking system may be now largely confined between 40-50 stressed corporate groups, mainly in infra sectors. Apart from some project delays or business viability, past policy paralysis, one of the main reasons may be India’s legacy issues of high real interest rate (lending rate). Govt/RBI may focus on those large 40-50 stressed accounts first and may deal with case to case basis, considering specific nature of NPA and try for an effective resolution; but it may also take significant time as simple management change may not be the only solution; there may be questions of project/business viability and other structural issues.

KMB need to expand & diversify at animal spirit now as its core lending business (loan growth/interest income) may have been slowed quite significantly over the last few quarters and NII is growing around 2.43% on QOQ basis. The bank is focusing more on CV & corporate loans like other 2^nd generations private banks (IIB/Yes bank); incremental corporate loans may be limited only to the top rated large corporate groups having little probability of default. KMB’s LAP/HL/Mortgage/unsecured PL/business banking portfolios may not be doing well; but secured PL/CC business is robust.

As with other 2^nd generations private banks, asset quality of KMB is quite stable in comparison to other old peers (ICICI/Axis) as the bank is quite cautious and did not lend irresponsibly to stressed borrowers in boom time (2010-12). But going forward, due to need for fast expansion & credit growth, quality of lending may also suffer for these banks (KMB/IIB/Yes), especially when they are entering next phase of growth amid intense competition among the peers. If there is no significant economic revival in India, no big solution to India’s huge unemployment or underemployment problem and growing protectionism from US & other EU countries, like UK, Germany & H1B Visa issues, there may be significant stress with the retail assets too at some point of time and these private banks, which are so far insulated from corporate stressed assets for their greater exposure in retail assets may also be in some kind of problem.

As of now around 60% of loan books of KMB (on standalone basis) is of corporate loans & 40% is of retail loans (SMES/business loans/PL/HL/LAP/CV/Agri); out retail loans, agri loan constitutes around 13% (Rs.16519 cr) which may also face some stress following farm loan waivers in UP, which may be likely followed by other states. PSBS will be reimbursed by the state Govts for the farm loan waiver; but private banks may not be and overall agri & also other credit discipline of the system may also be affected going forward due “moral hazard” of repeated loan waivers.

On consolidated basis, around 30% of KMB loan book is now of corporates & 70% consists of retail as of now after integration process with ING is completed. Despite high savings interest rate of 6% in some of the select savings accounts having min average balance above Rs.1 lakh, KMB’s average NIM was around 4.5%, slightly higher than its peers (4%) because of high yielding retail & corporate working capital loans; but post merger with ING, the average NIM dipped below 4.5% to around 4.2%. After ING integration, PCR also declined significantly from around 75% to 55% now. Credit costs has also increased post merger with ING from around 0.3% to 0.6%; analysts are expecting it to be stable around 0.40-0.35% in FY: 17-19.

KOTAK BANK-CONS-Q3FY17	Dec '16	Sep '16	Jun '16	Mar '16	Dec '15	YOY	QOQ	AVG	AVGR	SGR	PROJ(%)	Q4FY17	Q1FY18
i) Gross NPA	3,367.67	3,395.48	3,265.18	3,016.55	2,870.84	17.31	-0.82	3137.01	7.35	4.06	3.73	3493.29	3623.61
ii) Net NPA	1,450.43	1,622.15	1,565.40	1,353.03	1,200.21	20.85	-10.59	1435.20	1.06	5.01	0.17	1452.95	1455.47
i) % of Gross NPA	2.11	2.18	2.2	2.06	2.01	4.98	-3.21	2.11	-0.12	1.28	-0.20	2.11	2.10
ii) % of Net NPA	0.92	1.05	1.06	0.93	0.85	8.24	-12.38	0.97	-5.40	2.31	-3.35	0.89	0.86
NII	2,747.05	2,664.21	2,565.73	2,466.94	2,369.99	15.91	3.11	2516.72	9.15	3.72	4.99	2884.12	3028.04
OPM(%)	27.11	23.74	23.36	21.63	24.13	12.33	14.16	23.22	16.76	3.06	9.27	29.62	32.37
NP(%)	16.30	14.20	13.76	13.36	13.50	20.71	14.76	13.71	18.91	4.98	10.95	18.08	20.06
NIM (%)	4.49	4.47	4.37	4.3	4.34	3.46	0.45	4.37	2.75	0.86	1.23	4.55	4.60
CORPORATE ADV	48186	44243	42732	39946	39189	22.96	8.91	41527.50	16.03	5.33	9.00	52524.55	57253.72
RETAIL ADV	109615	109835	104272	104847	101947	7.52	-0.20	105225.25	4.17	1.84	1.92	111722.33	113870.17
TOTAL ADV	157801	154078	147004	144793	141136	11.81	2.42	146752.75	7.53	2.82	3.93	164001.40	170445.42
CORPORATE ADV(%)	30.54	28.71	29.07	27.59	27.77	9.97	6.34	28.28	7.96	2.46	4.81	32.01	33.55
RETAIL ADV (%)	69.46	71.29	70.93	72.41	72.23	-3.83	-2.55	71.72	-3.14	-0.96	-1.90	68.14	66.84

KMB is now aiming to increase the share of corporate loan to 40% from the present 30% on consolidated basis by snatching business from the fragile PSBS batting for stressed assets. The bank is now catering to 30 top big corporate groups in India very successfully and is aiming to add another 10 such niche corporate relationships by FY-18.

KMB has also acquired around 500 quality borrowers in the last three years in the large & medium sized corporate groups having minimum annual revenue of Rs.250 cr; the bank is aiming to add/acquire another 200 such entities, from the ailing PSBS as they have not enough capital for any revival in credit demand. But, most of the corporates may be already leveraged and battling their own stress in the balance sheet and lower capacity utilization & demand and in such scenario, revival of any credit demand may also take significant time.

Previously, KMB has given guidance at FY-16 for 20% loan growth, a credit cost of around 50-60 bps for FY-17. At FY-16, consolidated loan book was around Rs.144793 cr and thus the guided loan book for FY-17 should be around Rs.174000 cr; as on Q3FY17 it was at Rs.157801 cr; it may be little challenging to meet the projected loan growth at FY-17, considering the overall tepid credit growth of the Indian banking system, traditional conservative management of KMB, cultural difference with erstwhile ING Vysya Bank despite a smooth integration. Also GNPA/NNPA ratio of the KMB has increased by some extent after integration with ING, which contributed around 6% of GNPA to the merged entity, equivalent to 2.5% of the loan book of the merged entity.

On a standalone basis, non interest income of KMB may be robust on the back of core fee income and treasury gains and on an average over 50% of the PBT is coming from corporate/wholesale segment; rest is divided between retail banking and treasury income (around 25% each). Going forward, analysts are expecting around 19% CAGR in FY: 17-18 for the non interest income of KMB (standalone).

As par SOTP method calculated by various analysts based on some projected parameters of FY: 18-19, median value of KMB may be around 888 for FY-18 & 1015 for FY-19:

SOTP	I-DIRECT	HDFC-SEC	MOSL(FY-19)
KMB(BANKING OPERATIONS)	689	777	774
KOTAK LIFE	26	25	34
KOTAK PRIME	66	94	91
KOTAK CAPITAL	12	33	22
KOTAK SECURITIES	31	27	39
KOTAK AUM	16	19	55
SUBSIDIARY VALUE	151	198	241
LESS: HOLDING DISCOUNT(%)	0	20	0
NET SUBSIDIARY VALUE	151	158.4	241
MEDIN VALUE (KMB)	840	935.4	1015

For KMB, all the subsidiaries are contributing around 30% altogether to the consolidated profit and rest 70% is being generated by the banking operations. Thus, subsidiaries are also playing a vital role in overall KMB structure and out of those Kotak Prime (Car Finance), Kotak Securities & Kotak Life are making significant contributions in consolidated PAT.

PAT-SUBSIDIARIES	Dec '16	Sep '16	Jun '16	Mar '16	Dec '15	YOY	QOQ	AVG	AVGR	SGR	PROJ(%)	Q4FY17	Q1FY18
KMB(BANKING OPERATIONS)	880	813	742	696	635	38.58	8.24	721.50	21.97	8.30	12.04	985.93	1104.61
KOTAK PRIME	133	130	120	130	126	5.56	2.31	126.50	5.14	1.51	2.59	136.44	139.97
KOTAK INVESTMENTS	48	53	40	50	39	23.08	-9.43	45.50	5.49	6.27	2.02	48.97	49.96
KOTAK LIFE	68	63	71	77	60	13.33	7.94	67.75	0.37	2.74	3.59	70.44	72.98
KOTAK AMC	16	7	19	25	4	300.00	128.57	13.75	16.36	31.35	62.82	26.05	42.42
KOTAK SECURITIES	85	96	60	51	55	54.55	-11.46	65.50	29.77	14.59	11.63	94.89	105.93
KOTAK CAPITAL	7	5	23	17	6	16.67	40.00	12.75	-45.10	15.43	3.63	7.25	7.52
INTT SUBSIDIARIES	22	31	13	22	26	-15.38	-29.03	23.00	-4.35	12.58	-6.16	20.64	19.37
OTHERS	-9	-6	2	-2	-2	350.00	50.00	-2.00	350.00	-137.50	87.50	-16.88	-31.64
SUBSIDIARIES	370	379	348	370	314	17.83	-2.37	352.75	4.89	3.93	2.73	380.09	390.45
TOTAL	1250	1192	1090	1066	949	31.72	4.87	1074.25	16.36	6.86	9.00	1362.56	1485.25
MINORITY INTT	-18	-16	-19	-20	-15	20.00	12.50	-17.50	2.86	4.18	6.13	-19.10	-20.28
OTHERS	35	26	-4	9	11	218.18	34.62	10.50	233.33	-220.51	25.50	43.92	55.12
TOTAL CONS PAT	1267	1202	1067	1055	945	34.07	5.41	1067.25	18.72	7.41	10.01	1393.85	1533.41
SUBSIDIARY SHARE(%)	29.20	31.53	32.61	35.07	33.23	-12.11	-7.38	33.11	-11.80	-3.11	-6.33	27.35	25.62

Acquisition of ING Vysya by KMB (effective from FY-16) has put the bank into a formidable presence in Southern India market with higher SME portfolios along with some other operational synergies. Over the years KMB is able to maintain its standard of asset/loan portfolio despite tough macroeconomic condition on the basis of its prudent & conservative management and a super efficient recovery mechanism. Looking ahead, for sustained growth, KMB has to grow its loan portfolio incrementally; but in that process, may also sacrifice some of its quality for quantity.

KMB has recently got approval from RBI to launch an “Infra Debt Fund” (IDF) to fund upcoming infra projects and also any existing/completed infra projects having track record of at least one year of satisfactory running (commercially viable). Previously, KMB as a policy, shunned the infra projects unlike ICICI & Axis bank because of uncertainties of completion & commercial viability of such projects. Thus, KMB was able to avoid any large scale NPA in the infra sector unlike its private peers (ICICI & Axis); but after NAMO’s convincing win in UP/huge political mandate may have changed that perception of the Bank and it now believes old turbulence (policy paralysis) may be now over and going forward, the uncertainties of the infra sector will be lower and cash flow will become more predictable with more upcoming projects. There are already three such NBFC-IDC operating in India as of now (ICICI; LT & IDFC) and they have already refinanced around Rs.10000 cr worth of infra projects. Due to nature of long gestation period and unpredictable cash flows, these infra projects may not be suitable for typical bank finance. Thus, KMB is taking some risks in “letter & spirit” of its “animal spirit” by funding the infra sector in pursuit of an incrementally higher growth, which may also affect its credit quality to some extent in the coming days.

As par KMB management, the banks targets to double its organic customer base by FY-19 and aims for a consolidated PAT of Rs.7219 cr and a BVPS of 241 which translates into an average CAGR of around 23% over FY: 17-19. But for this KMB may also need to grow inorganically apart from its various strategies for organic growth and thus need to further raise capital at the expense of an incrementally higher dilution of its equity. The consistent trend of equity dilution may be one of the major factors for limited upside in the stock price despite management’s thirst for an “animal spirit” of growth.  

By its digital initiative of “811”, KMB may now want to be a bank for mass customers rather than largely for affluent (HNI) clients as of now. By “811”, KMB may pose major challenge to its peers/competitors; but that may not lead to a significant upgrade in financials/core earnings.

No doubt, KMB is one of the great stories in Indian private banking space, where for new generations bank, 25% CAGR in earnings may be the minimum bench mark; but the space may be also maturing for saturation after years of high growth and a growing competition among the peers & also new entrants. Valuation wise the scrip may be quite expensive at around 900 & TTM PE of 35 and from the recent time & price action, it seems that almost all the positive news may have been already discounted by the market. The scrip has rallied around 30% from its early Jan’17 low till few days ago.

Thus, for investors buy either on some dips around 770-720 or on technical breakout above 925 may fetch decent return in KMB for near to long term target of 975-1015 & 1080. 

KOTAK BANK-CONS-FY-16	Mar '16	Mar '15	Mar '14	Mar '13	Mar '12	FY:12-16	FY:15-16	AVG	AVGR	SGR	PROJ(%)	FY-17	FY-18
Interest Earned
(a) Int. /Disc. on Adv/Bills	15,412.37	10,121.19	9,029.57	8,219.70	6,551.93	135.23	52.28	8480.60	81.74	23.63	47.86	22789.16	33696.69
(b) Income on Investment	4,408.28	3,050.55	2,841.77	2,478.73	1,840.54	139.51	44.51	2552.90	72.68	23.06	43.78	6338.28	9113.25
(c) Int. on balances With RBI	132.05	61.02	68.55	100.26	41.11	221.21	116.40	67.74	94.95	33.20	74.96	231.04	404.24
(d) Others	448.94	86.13	46.02	39.18	36.85	1118.29	421.24	52.05	762.60	132.95	399.09	2240.61	11182.65
INTEREST INCOME	20,401.64	13,318.89	11,985.91	10,837.87	8,470.43	140.86	53.18	11153.28	82.92	24.18	48.87	30372.80	45217.30
Other Income	7,572.88	8,103.86	5,249.72	5,075.23	4,466.97	69.53	-6.55	5723.95	32.30	15.81	14.74	8688.78	9969.11
TOTAL REVENUE	27,974.52	21,422.75	17,235.63	15,913.10	12,937.40	116.23	30.58	16877.22	65.75	20.47	36.47	38175.82	52097.18
EXPENDITURE
Interest Expended	11,122.97	6,966.10	6,312.12	6,024.49	4,541.96	144.89	59.67	5961.17	86.59	24.85	51.84	16888.58	25642.81
Employees Cost	3,854.05	2,375.47	1,915.12	1,773.51	1,601.54	140.65	62.24	1916.41	101.11	25.99	56.13	6017.17	9394.37
Other Expenses	6,982.20	7,325.47	5,003.92	4,787.76	4,038.65	72.88	-4.69	5288.95	32.01	15.47	15.25	8047.29	9274.85
OPEX	21,959.22	16,667.04	13,231.16	12,585.76	10,182.15	115.66	31.75	13166.53	66.78	20.49	36.98	30080.59	41205.57
EBITDA	6,015.30	4,755.71	4,004.47	3,327.34	2,755.25	118.32	26.49	3710.69	62.11	20.70	34.72	8103.68	10917.09
Depreciation	0	0	0	0	0	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
EBITA	6,015.30	4,755.71	4,004.47	3,327.34	2,755.25	118.32	26.49	3710.69	62.11	20.70	34.72	8103.68	10917.09
Provisions	991.56	205.73	308.97	183.18	98.7	904.62	381.97	199.15	397.91	115.84	280.47	3772.57	14353.41
Exceptional Items	0	0	0	0	0	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
PBT	5,023.74	4,549.98	3,695.50	3,144.16	2,656.55	89.11	10.41	3511.55	43.06	16.64	23.10	6184.19	7612.70
Tax	1,592.62	1,484.90	1,183.96	939.95	806.01	97.59	7.25	1103.71	44.30	18.22	23.54	1967.57	2430.78
PAT	3,431.12	3,065.08	2,511.54	2,204.21	1,850.54	85.41	11.94	2407.84	42.50	15.99	22.95	4218.44	5186.42
Minority Interest	-65.19	-59.51	-62.17	-49.33	-52.84	23.37	9.54	-55.96	16.49	6.04	9.48	-71.37	-78.14
Share Of P/L Of Associates	92.92	39.88	15.62	33.58	34.55	168.94	133.00	30.91	200.64	57.98	108.46	193.71	403.81
Net P/L After M.I & Associates	3,458.85	3,045.45	2,464.99	2,188.46	1,832.25	88.78	13.57	2382.79	45.16	16.51	24.36	4301.40	5349.19
Equity Share Capital	917.19	386.18	385.16	373.3	370.34	147.66	137.50	378.75	142.17	35.43	88.00	1724.36	3241.88
EPS	18.86	39.43	32.00	29.31	24.74	-23.78	-52.18	31.37	-39.89	-1.05	-24.77	14.19	10.67
EPS(REPORTED)
Basic EPS	18.91	39.49	32.19	29.44	24.81	-23.78	-52.11	31.48	-39.93	-1.09	-24.77	14.23	10.70
Diluted EPS	18.87	39.4	32.14	29.33	24.67	-23.51	-52.11	31.39	-39.88	-1.01	23.00	23.21	28.55
AVERAGE PE	25	25	25	25	25							25	25
MEDIAN VALUATION	471.75	985.00	803.50	733.25	616.75							580.25	713.71
Book Value (Rs)	181.86	286.63	247.64	204.25	174.18	4.41	-36.55	228.18	-20.30	3.79	19.50	217.32	259.70
AVERAGE PB	3.25	3.25	3.25	3.25	3.25							3.25	3.25
MEDIAN VALUATION	591.05	931.55	804.83	663.81	566.09							706.30	844.03
i) Gross NPA	3,016.55	1,392.35	1,177.80	848.36	699.74	331.10	116.65	1029.56	192.99	47.80	110.06	6336.44	13310.07
ii) Net NPA	1,353.03	697.44	633.81	361.22	273.43	394.84	94.00	491.48	175.30	50.95	104.74	2770.19	5671.69
i) % of Gross NPA	2.06	1.56	1.63	1.27	1.31	57.25	32.05	1.44	42.81	13.24	25.60	2.59	3.25
ii) % of Net NPA	0.93	0.79	0.88	0.55	0.51	82.35	17.72	0.68	36.26	18.69	23.32	1.15	1.41
PCR(%)	55.5	53.1	60.3	75.9	75.4	-26.39	4.52	66.18	-16.13	-6.83	-6.26	52.03	48.77
NIM(%0	4.3
CREDIT COSTS(%)	0.63	0.62	0.27	0.33	0.21	200.00	1.61	0.36	76.22	37.36	41.30	0.89	1.26
SLIPPAGE RATIO	2.68	2.51	1.58	0.97	0.9	197.78	6.77	1.49	79.87	33.93	42.50	3.82	5.44

Analytical Charts: Kotak Bk