Monday, February 13, 2012

>KOTAK MAHINDRA BANK: Good Quality But Valuations Rich

■ Kotak bank continues focusing more on transaction banking and working capital loans as opposed to project loans or big concentrated bets. It expects loan growth to be around 25% in FY13

 The bank is optimistic on its CASA acquisition strategies. It intends to increase CASA base but refrained from assigning any number as it has been only 2 months.

 Fee income on a normalized basis can be expected to follow balance sheet growth.

 Bank plans to increase branch network from 330 (Dec ‘11) to 500 branches by Calendar 2013.

 Asset quality continues to hold up. Bank does not expect major slippages and restructuring coming forward.