Kotak Mahindra Bank Ltd on Saturday reported a 7.63 per cent year-on-year (YoY) jump in standalone net profit at Rs 3,005.01 crore compared with Rs 2,791.88 crore in the same quarter last year. The private lender said its net interest income for the quarter rose 16 per cent YoY to 6,554 crore from Rs 5,653 crore YoY. Net interest margin (NIM) for the quarter came in at 5.22 per cent. Kotak Mahindra Bank said the quarter saw the private lender making Rs 143 crore in provision (post tax) on applicable Alternate Investment Fund (AIF) investments pursuant to RBI’s circular dated December 19, 2023.
Interest earned for the quarter stood at Rs 11,799.02 crore, up 31.2 per cent over Rs 8,998.61 crore in the year-ago quarter. Income from fees and services rose 26 per cent YoY to Rs 2,144 crore from Rs 1,695 crore. The bank said it had 4.8 crore customers at the end of December quarter against 3.9 crore in the year-ago period.
Asset quality, slippages
The bank said its gross non-performing assets (NPAs) as percentage of advances stood at 1.73 per cent for the quarter against 1.90 per cent in the year-ago quarter. Net non-performing assets came in at 0.34 per cent against 0.43 per cent YoY. The provision coverage ratio stood at 80.6 per cent. Capital adequacy ratio, as per Basel III, as at December 31, 2023 was 21.2 per cent and CET I ratio of 20.1 per cent (both including unaudited profits), Kotak Mahindra Bank said in a BSE filing.
The bank said its slippages for the quarter stood at Rs 1,177 crore, which were 0.3 per cent of net advances. Slippages stood at Rs 748 crore in the year-ago quarter. For December quarter, Rs 289 crore slippages were upgraded against Rs 171 crore YoY.
Recoveries, credit cost
Kotak Mahindra Bank said its recoveries and upgrades for the quarter stood at Rs 830 crore. Credit cost on net advances (including standard provision excluding reversal of COVID & restructuring) was 40 bps annualised for Q3FY24. There was no sale of loans during the period. Total provisions towards advances stood at Rs 6,963 crore.
AIF provisions
The bank said AIF investments of Rs 190 crore having downstream exposure to debtor companies of the bank were fully provided. The lender funded o/s to such companies Rs 65 crore as at December 31. There were no investments in subordinated units with priority distribution, it said.
Consolidated results
On a consolidated basis, the bank reported a 6.75 per cent YoY rise in consolidated net profit at Rs 4,264.78 crore for the December quarter compared with Rs 3,995.05 crore in the same quarter last year.
At the consolidated level, the return on assets (ROA) stood at 2.46 per cent against 2.76 per cent YoY. Return on equity (ROE) for Q3FY24 came in at 13.83 per cent against 15.04 per cent YoY. Consolidated Capital Adequacy Ratio as per Basel III as at December 31, 2023 was at 22.2 per cent and CET I ratio at 21.2 per cent. Consolidated capital and reserves & surplus as at December 31, 2023 stood at Rs 1,25,039 crore (Rs 1,07,670 crore as at December 31, 2022). The book value per share was Rs 627.
Advances, deposit growth
Advances (including IBPC & BRDS) jumped 19 per cent YoY to Rs 3,72,464 crore as at December 31, 2023 from Rs 3,13,154 crore as at December 31, 2022. Customer assets, which comprises advances and credit substitutes, rose 17 per cent YoY to Rs 4,00,759 crore against Rs 3,41,733 crore YoY.
Kotak Mahindra Bank said its unsecured retail advances (including retail micro finance) as a percentage of net advances stood at 11.6 per cent as at December 31, 2023. This is against 9.3 per cent as at December 31, 2022.
"Average Current deposits grew to Rs 59,337 crore for Q3FY24 compared to Rs 56,372 crore for Q3FY23 up 5 per cent YoY. Average Savings deposits grew to Rs 1,23,227 crore for Q3FY24 compared to Rs 1,18,442 crore for Q3FY23 up 4 per cent YoY . Average Term deposit up 43 per cent YoY from Rs 1,51,470 crore for Q3FY23 to Rs 2,16,344 crore for Q3FY24," the bank said.
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