Kotak Mahindra Bank Q3 net profit up 30.79% at Rs3,403cr on lower interest costs and lower loan loss provisions

28 Jan 2022 , 08:23 PM

Kotak Mahindra Bank reported -3.37% yoy fall in total consolidated revenues in the Dec-21 quarter at Rs14,176cr. Revenues of Kotak Bank were down -7.6% on a sequential basis.

In terms of top line revenues, Kotak Bank saw revenue growth across retail banking, corporate banking, broking and asset management. However, treasury gains were lower due to higher bond yields.

The top line was also lower due to losses on sale of investments and investment revaluation, as compared to gains in the Dec-20 quarter.

For the Dec-21 quarter, the operating profits were up 8.26% at Rs4,293cr. Net interest income or NII was 12%  in the quarter at Rs4,334cr.

Net interest margins or NIM remained robust and among best in class at 4.62%. Net customer additions were more than double in the quarter at 2.1 million on yoy comparison.

The CASA ratio improved by 100 bps at 59.9%. Operating margin or OPM expanded from a level of 27.03% in Dec-20 to 30.28% in Dec-21 quarter.

Profit after tax (PAT) for the Dec-21 quarter was up by 30.79% at Rs3,403cr. This was largely on account of provisions turnaround to provision writeback in the latest quarter. Gross NPAs were slightly higher at 2.71% for the bank while the credit cost on advances stood at just about 0.35% annualized.

Capital adequacy is extremely comfortable at 21.3%. PAT margins improved from 17.73% to 24.00% on a yoy basis. Net margins were also higher on a sequential basis.

Financial highlights for Dec-21 compared yoy and sequentially

	Kotak Mahindra Bank
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income	₹ 14,176	₹ 14,671	-3.37%	₹ 15,342	-7.60%
Operating Profit	₹ 4,293	₹ 3,965	8.26%	₹ 4,365	-1.66%
Net Profit	₹ 3,403	₹ 2,602	30.79%	₹ 2,989	13.85%
Diluted EPS	₹ 17.15	₹ 13.14		₹ 15.06
Operating Margins	30.28%	27.03%		28.45%
Net Margins	24.00%	17.73%		19.48%
Gross NPA Ratio	2.75%	2.25%		3.16%
Net NPA Ratio	0.87%	0.53%		1.09%
Return on Assets (Not Ann)	0.65%	0.56%		0.60%
Capital Adequacy	21.29%	21.54%		21.76%