Kotak Mahindra Bank

Kotak Mahindra Bank has reported strong results for the quarter ended December 11 with 47% jump in the Standalone Net profit at Rs 276.08 crore over 21% jump in the NII at Rs 651.45 crore. Strong growth in the advances book aided with robust 41% jump in the non interest income at Rs 281.96 crore coupled with 480 bps dip in the cost to income ratio has aided Operating profit up 41% to Rs 443.61 crore. Further dip in the provisions and contingencies by 28% to Rs 30.72 crore has aided growth in the Net Profit.

On the consolidated front, it has reported 21% jump in the Net Profit at Rs 462.63 crore over 14% increase in NII at Rs 999.71 crore. Dip in operating expenses by 12% paired with 15% dip in provisions and contingencies which has offset the fall in other income by 15%; and aided growth in Net Profit.

Asset Quality:

• Asset quality of has improved in the quarter under review. The Gross NPA has declined 18% y-o-y and remained flat at Rs 609.70 crore at end of December 11. The Net NPA has declined 5% y-o-y and inched up 6% q-o-q to Rs 223.69 crore in the same period under review.
• %GNPA improved to 1.52% in quarter under review against 2.53% a year ago and 1.61% a quarter ago. %NNPA was at 0.56% against 0.81% a year ago. Excluding bought out NPA's %GNPA was at 1.10% against 1.66% a year ago and 1.01% a quarter ago, %NNPA stood at 0.49% against 0.57% a year ago and 0.43% a quarter ago.

• On the Standalone Bank, the advances grew 38% y-o-y and 6% q-o-q to Rs 39772 crore in quarter ended December 11. Thanks to strong 54% y-o-y and 10% q-o-q jump in the corporate advances to Rs 20639 crore. The retail advances grew 24% y-o-y and 3% q-o-q to Rs 19133 crore. Further, the CV and construction advances grew 36% y-o-y and 3% q-o-q to Rs 7540 crore, Agri credit grew 30% y-o-y and 15% q-o-q to Rs 4894 crore. The home loans grew 20% to Rs 7935 crore and that of personal loans grew 38% y-o-y and 13% q-o-q to Rs 1689 crore. The share of retail book declined to 48.1% against 49.7% a quarter ago and 53.5% a year ago.
• The Deposits of the bank improved 36% y-o-y and 5% q-o-q to Rs 38385 crore at end of December 11. SA deposits jumped up 38% y-o-y and 24% q-o-q to Rs 4426 crore. CASA deposits grew 13% q-o-q and 35% y-o-y to Rs 10615 crore at end of December 11. CASA% stood at 27.7% against 27.8% a year ago and 25.7% a quarter ago.
• Capital Adequacy ratio stood at 17.5% with tier I capital of 15.6% at end of December 11 against 20.4% with tier I capital of 18.2% at end of December 10.
• ROA stands at 1.8% at quarter ended December 11 against 1.5% a year ago.
• Total no of branches and ATM's at end of December 11 stands at 330 and 781 respectively against 298 branches and 642 ATM's at end of December 10.

• On the consolidated front, advances grew 32% y-o-y and 4% q-o-q to Rs 52847 crore at end of December 11. Deposits grew 38% y-o-y and 5% q-o-q to Rs 36212 crore. Total assets grew 6% q-o-q and 26% y-o-y to Rs 88514 crore at end of December 11.
• NIM slipped to 4.7% at end of December 11 against 5% a year ago and 4.8% a quarter ago.
• Book Value per share improved to Rs 167.9 at end of December 11 against 142.6 a year ago and 161 a quarter ago.
• ROA stands at 2.2% against 2.4% a year ago and 2.1% a quarter ago. ROE stands improved to 15.1% in quarter ended December 11 against 14.8% a year ago and 14.9% a quarter ago.
• %GNPA improved to 1.27% against 2.12% a year ago and 1.38% a quarter ago. %GNPA excluding brought out assets was at 0.95% against 1.49% a year ago and 0.93% a quarter ago. On the other hand, %NNPA stood at 0.47% against 0.69% a year ago and 0.46% a quarter ago. % NNPA excluding stressed assets stood at 0.41% against 0.51% a year ago and 0.36% a quarter ago.

SBU's Performance:

• Kotak Mahindra Prime has reported 23% jump in the revenues at Rs 474 crore and 11% increase in PAT at Rs 104 crore. The total advances of this business improved 19% y-o-y and declined 1% q-o-q to Rs 12379 crore, of which car advances grew 22% y-o-y and declined 1% q-o-q to Rs 9737 crore. Capital adequacy ratio was strong at 16.8% against 15.9% a quarter ago.
• Life Insurance Business has reported 6% y-o-y and 1% q-o-q growth in AUM at Rs 8284 crore. The gross premium improved y-o-y by 5% (slipped q-o-q by 5%) to Rs 639 crore at end of December 11. The company runs 204 branches in this business. The solvency ratio stands at 3.06 against 2.61 a year ago and 3.04 q quarter ago.
• Kotak Securities has reported sharp 49% dip in PAT at Rs 24 crore over 32% dip in the total income at Rs 134 crore. The Market share has slipped to 2.9% from 3.6% a year ago. However, it has remained flat on q-o-q basis.
• Kotak Investment Advisory has reported 17% increase in the Pat at Rs 7 crore over flattish revenues of Rs 23 crore.

Quarterly Performance:

For the quarter ended December 11, Kotak Bank has reported 21% increase in the standalone NII at Rs 651.45 crore mainly on the back of healthy 38% growth in the advances. Interest earned increased 49% to Rs 1640.98 crore while that of Interest expended surged 74% to Rs 989.53 crore. The Other income has reported healthy 41% increase to Rs 281.96 crore and led Net total income up 27% to Rs 933.41 crore.

The Operating expenses grew 16% to Rs 489.80 crore, thanks to 14% increase in the employee cost at Rs 226.01 crore and other operating expenses at Rs 263.79 crore in the quarter under review. The cost to income ratio slipped 480 bps to 52.5% and boosted operating profit up 41% to Rs 443.61 crore. With the improvement in the asset quality, provisions and contingencies slipped 28% to Rs 30.72 crore and led PBT further up 52% to Rs 412.89 crore. Finally, 220 bps increase in the effective tax rate at 33.1% has led Net Profit up 47% to Rs 276.08 crore.

YTD Performance:

For the nine months ended December 11, Kotak Bank has reported 38% jump in the Net Profit at Rs 788.13 crore over 19% increase in the NII at Rs 1824.76 crore. Strong growth in the non interest income by 36% to Rs 723.11 crore coupled with 110 bps dip in the cost to income ratio at 52.5% has drived Operating profit up 26% to Rs 1209.68 crore. Finally sharp 65% dip in the provisions and contingencies at Rs 50.45 crore has led the growth in Net Profit.

Kotak Mahindra Bank: Standalone Results

Kotak Mahindra Bank: Consolidated Results