Kotak Bank Q2FY23 PAT up 20.7% at Rs3,608 crore on 70% fall in provisions and NIMs spiking to 5.17%

22 Oct 2022 , 08:56 PM

Kotak Mahindra Bank Ltd reported 14.2% growth in total revenues for the September 2022 quarter on consolidated basis at Rs17,513cr.

Revenue growth was 50.21% in sequential terms, helped by banking and insurance verticals.

Net interest income (NII) was up 26.8% yoy at Rs5,099 crore while the net interest margins (NIM) spiked from 4.45% to 5.17%.

CASA ratio reduced in the quarter from 60.6% to 56.2% due to greater focus on corporate deposits.

The gross NPAs of the bank fell from 3.19% to 2.08% while the net NPAs fell from 1.06% to 0.55% yoy. Recoveries and upgrades were worth Rs945 crore in the quarter.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 20.7% at Rs3,608cr on the back of a sharp growth in NII, expansion of NIMs to 5.17% provisions falling 70% yoy in the quarter.

Provision coverage ratio has improved from 67.5% to 73.7% yoy. Net slippages stood at Rs653 crore or just about 0.2% of advances. PAT margins were higher at 20.6% in the Sep-22 quarter compared to 19.48% in the Sep-21 quarter but lower than 23.63% in June 2022 quarter. Total advances were up 25% yoy and 5% on a sequential basis.

Financial highlights for Sep-22 compared yoy and sequentially

	Kotak Bank
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 17,513	₹ 15,343	14.15%	₹ 11,659	50.21%
Operating Profit (Rs cr)	₹ 4,884	₹ 4,366	11.86%	₹ 3,695	32.19%
Net Profit (Rs cr)	₹ 3,608	₹ 2,989	20.73%	₹ 2,755	30.95%
Diluted EPS (Rs)	₹ 18.17	₹ 15.06		₹ 13.88
OPM	27.89%	28.46%		31.69%
Net Margins	20.60%	19.48%		23.63%