Days after declaring the strong Q1 results of the yes bank, Kotak Mahindra Bank, ICICI bank. There is expected an increase in buying interest in these said banks. Apparently ICICI Bank and Kotak Mahindra Bank are more likely to capture the attention of the bulls as compared to the Yes bank.
As a result of strong Q1 of the ICICI Bank, Jefferies has increased its long term target from Rs. 1070 to Rs. 1080 per piece, the share price of ICICI banks is Rs. 800 per share in the market today therefore there is an expectation of 35% upside after vigorous Q1 earning.
When it comes to Kotak Mahindra Bank shares Mr. Anand Damma who is the senior research analyst at Emlay Global Finance Services expected that they are expecting from the bank to deliver 2 – 2.1% RoA on the back of stabilizing growth and lower LLP with RoE of around 12% to 14% over FY23-25 due to the raised capital levels. He guided the positional investors to buy the shares of Kotak Mahindra Bank for the target price of Rs. 2180 per piece. He also revealed that Yes bank shares are at Rs. 12.50. The stock my attract more bulls after breakout above 16.20 per piece and might increase up to Rs. 19 per piece.
Coming to Yes Bank or Kotak Mahindra Bank or ICICI bank shares Mr. Ravi Singhal also the CEO at GCL services even though all the three banks have given strong Q1 numbers but among them ICICI Bank is more promising with 50% increase in standalone profit and 21% growth in advances. The shares of ICIC Bank are expected to defeat its competitors in long term.
Kotak Mahindra Bank jumps up to 81% in unsecured loans (25 July 2022)
Kotak Mahindra Bank which has a reputation for its restrictive approach towards lending unsecured loans it can be assumed they have discarded their tag by constituting 35.2% in its Q1 loan books gradually growing up to 81% every year.
The bank has announced a 26% increase in their total income at Rs. 2071 crore this quarter, with steep fall in dud loans, resulting a treasuring hit of Rs. 8500. The bank reported that there has been a 29% of growth in a year ranging from Rs. 2,80,177 from Rs. 2,17,447 crore. In the march 2022 quarter the bank has witnessed a growth of 3%.
What is to be noticed is that out of 62,724 crore loan sale in the said quarter year Rs. 22,085 crore of them are unsecured loans. There are zero bad loans in the given segment under 90 day margin for default. The bank has 0.62% of bad loans in the quarter from 1.28% and their gross net NPAs lowered from 3.56% to 2.24%. The unsecured loans may include the credit card outstanding, personal and business loans retain microfinance loans or any other advances which are collateral. The main reason for its speedy growth are personal and business loans, consumer durable funding along with credit cards.