Kotak Mahindra Bank is set to release its first-quarter results on Saturday, and here are the key details:

Net Profit Forecast

According to a poll of analysts by FactSet, Kotak Mahindra Bank is expected to report a net profit of 32.59 billion Indian rupees ($396.7 million) for the quarter ended June 30. This would represent a significant increase of 57% compared to the net profit of INR20.71 billion recorded in the same period last year.

What to Watch For

Loan Quality

Kotak Mahindra Bank’s ratio of gross nonperforming assets to gross advances improved to 1.76% in the fourth quarter of the previous fiscal year, down from 2.37% a year earlier. The bank also made provisions of INR1.48 billion in its fiscal fourth quarter, compared to a reversal of provisions of INR3.98 billion in the previous year. Investors will be keen to see if there are any further improvements in loan quality.

Lending Growth

As of the end of March, customer assets, primarily advances, rose by 19% from the previous year to INR3.527 trillion. The pace of loan growth will be an area of focus for investors.

Segment Performance

In the fourth quarter, profit from retail banking more than doubled from the previous year to INR13.62 billion, while profit from corporate and wholesale banking increased by 16% to INR20.89 billion. Key segments’ performance will be closely monitored by investors.

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