KRChoksey is bearish on Kotak Mahindra Bank and has recommended reduce rating on the stock with a target of Rs 545 in its July 20, 2012 research report.
"Kotak Mahindra Bank reported muted consolidated earnings of Rs 443 crore which grew 6.6% Y-o-Y & down 14.9% Q-o-Q, below than our expectation. Standalone bank, Kotak prime and Kotak Life continued to be key growth drivers to consolidated PAT. Securities broking, investment banking and asset management businesses continued to see weak earnings and core operating performance. Net earnings from Broking, and investment banking management were down 54% & 40% sequentially reflecting challenging operating environment and falling business volumes. Kotak Life insurances net profits went down 30.4% Y-o-Y to Rs32 crs owing to subdued volume growth."
"On standalone basis, NII increased 27.0% y-o-y & 4.9% q-o-q led by strong loan growth of 30.9% y-o-y & 8.3% Q-o-Q and steady NIM. Standalone PAT grew modestly 12.1% y-o-y and