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Kotak Mahindra Bank Q2 profit rises 15%

October 24, 2018 Kotak Mahindra Bank, Private Banks, Q2 Results, Q2FY19, Results No comments

Private sector lender Kotak Mahindra Bank has reported 14.82 percent on year growth in second quarter profit to Rs 1,141.65 crore, driven by NII, operating and other income. However, higher provisions YoY limited profitability.

Profit in corresponding period last fiscal stood at Rs 994.31 crore. Net interest income during the quarter grew by 16.28 percent to Rs 2,689.1 crore with loan growth at 21.21 percent YoY, the bank said.

The bank registered a whopping 27.77 on year growth in retail loans at Rs 78,167 crore, which contributed 42 percent to total advances in Q2, and corporate loans increased 16.82 percent YoY to Rs 1,06,773 crore. Deposits in the quarter ended September 2018 increased 24.24 percent year-on-year to Rs 2.06 lakh crore, it said.

Asset quality improved in September quarter sequentially with gross non-performing assets (as a percentage of gross advances) falling at 2.15 percent against 2.17 percent and net NPA down at 0.81 percent against 0.86 percent.

Kotak Bank said provisions and contingencies increased 63.40 percent year-on-year to Rs 353.8 crore but declined 24.66 percent sequentially. Special Mention Accounts-2 outstanding stood at Rs 165 crore for the quarter, which was 0.09 percent of net advances, it added.

The private sector lender registered a healthy 26.35 percent on year growth in other income (non-interest income) at Rs 1,205.27 crore with 26 percent growth in fees & services business. Operating profit grew by 21.46 percent YoY to Rs 2,095 crore for the quarter ended September 2018.

Consolidated profit during the quarter grew by 21.3 percent year-on-year to Rs 1,747.4 crore and net interest income increased by 14.7 percent to Rs 3,538.4 crore.

Kotak Mahindra Bank reports 12% rise in profit

July 19, 2018 Kotak Mahindra Bank, Private Banks, Q1 Results, Q1FY19, Results No comments

Kotak Mahindra Bank Ltd on Thursday said its net profit for the June quarter rose 12.3% from a year ago helped by higher net interest income and other income. Standalone net profit for the first quarter stood at Rs 1,024.94 crore against Rs 912.73 crore a year ago. According to Bloomberg analyst estimates, the bank was expected to post a profit of Rs 1,208.50 crore.

Net interest income (NII), or the core income a bank earns by giving loans, was up 15.02% to Rs 2,582.90 crore versus Rs 2,245.55 crore last year. Other income grew 28.4% to Rs 1,164.59 crore.

Provisions and contingencies surged 130.5% to Rs 469.63 crore in the quarter from Rs 203.74 crore a year ago. On a quarter-on-quarter basis, they increased 53% from Rs306.94 crore.

Gross non-performing assets (NPAs) rose marginally 4.6% to Rs 3,899.45 crore at the end of the June quarter from Rs 3,726.62 crore in the same quarter last year. Slippages during the quarter declined 46% to Rs 321 crore against Rs 594 crore a quarter ago.

As a percentage of total loans, gross NPAs fell at 2.17% as compared to 2.22% in the previous quarter and 2.58% in the year-ago quarter. Net NPAs declined at 0.86% in the June quarter compared to 0.98% in the previous quarter and 1.25% in the same quarter last year.

Advances for the quarter grew 24% to Rs 1.77 trillion while deposits rose 16% to Rs 1.89 trillion. Net interest margin rose to 4.04% against 3.54% a quarter ago.

The bank reported a consolidated net profit of Rs 1574.48 crore against Rs 1346.82 crore a year ago.

Kotak Mahindra Bank Q4 net profit rises 15%

April 30, 2018 Kotak Mahindra Bank, Private Banks, Q4 Results, Q4FY18, Results No comments

Kotak Mahindra Bank Ltd Monday reported an over 15% jump in March quarter net profit, boosted by higher net interest income and other income.

Net profit for the quarter stood at Rs1,124.05 crore against Rs976.48 crore a year ago, the bank said. A Bloomberg poll of 11 analysts had expected the bank to post a net profit of Rs1,170.20 crore.

Net interest income (NII), or the core income a bank earns by giving loans, increased 19.4% to Rs2,579.75 crore, versus Rs2,161.37 crore last year. Other income stood at Rs1,151.63 crore, up 14.86% from Rs1,002.65 crore a year ago.

Uday Kotak, who has been re-designated as managing director and chief executive officer, said the profit growth would have been even higher, had it not been for the one-time hit of Rs82 crore related to employee costs from change in gratuity limits.

Provisions and contingencies rose 14.8% to Rs306.91 crore from Rs267.37 crore a year ago. On a quarter-on-quarter basis, they rose 44.24% from Rs212.77 crore.

Kotak said overall provisioning costs, which fell to 56 basis points in the previous fiscal from 61 basis points a year before, is expected to fall further. However, this will also depend on the movement in the bond market.

Gross non-performing assets rose to Rs3,825.38 crore at 31 March from Rs3,578.61 crore in the same quarter last year.

The bank reported an improvement in asset quality.

As a percentage of total loans, gross NPAs stood at 2.22% compared with 2.31% in the previous quarter and 2.59% in the year-ago quarter. Net NPAs were at 0.98% in the March quarter compared to 1.09% in the previous quarter and 1.26% in the same quarter last year.

On the overall stressed assets situation, Kotak said his group is keen on participating in the auctions of companies under the Insolvency & Bankruptcy Code, but the focus will be on ensuring that such participation will yield a fair risk-return ratio.

Kotak Realty Fund, along with Cube Highways, has submitted a bid for Jaypee Infratech, one of the 12 cases referred for insolvency proceedings following the Reserve Bank of India’s (RBI) directive last year.

Kotak said in cases where banks have received a single bid, the value of that bid is close to liquidation value. However, one must not rule out the resolution of assets via liquidation.

Kotak Mahindra Bank becomes 2nd most valuable lender

April 18, 2018 Kotak Mahindra Bank, Market Cap, News&Articles, state bank of india No comments

Kotak Mahindra Bank, once known for broking and deal making, on Monday surpassed the country’s largest state-run commercial lender State Bank of India in market value for the first time to become the second-most valuable bank in India after HDFC Bank.

The Uday Kotak-promoted bank’s market capitalisation rose to Rs 2.23 lakh crore at the end of the day on Monday, compared with SBI’s market cap of Rs 2.22 lakh crore. HDFC Bank, with Rs 5.03 lakh crore market cap, is still the undisputed leader in the banking sector.

State-run banks have been hobbled by bad loans and rising defaults across the corporate sector and have cut back on big-ticket lending, focusing instead on retail businesses. Retail banking is otherwise an area where private sector banks have enjoyed a steady advantage for many years.

“While PSU banks, including SBI, are reeling under several issues like non-performing assets and continued equity dilutions, there was a gradual shift by investors from private corporate lenders to private retail lenders, which led their shares touching new highs each year,” said Rajat Rajgarhia, MD-institutional equities at Motilal Oswal Financial Services.

Kotak Mahindra Bank shares have rallied 33 per cent in the last one year, compared to a 15 per cent decline in the SBI stock. Private sector lenders HDFC Bank and IndusInd have both grown 30 per cent each over the past year.

Kotak Mahindra had 1.2 crore deposit customers at the end of December 2017, a 50 per cent increase from March 2017. The bank’s 811 accounts have resulted in savings both in terms of customer acquisition costs and the cost of servicing customers.

Kotak has been a steady performer over the rate cycles, and most analysts expect the bank would maintain its strong performance in the March quarter as well.

“There is a significant opportunity for well-run private sector banks, such as Kotak, to grow market share in the corporate and SME loan space, especially so in the backdrop of public sector banks struggling under the weight of NPAs and operational/risk management issues,” said Lalitabh Shrivastawa, AVP – research, Sharekhan.

“On the other hand, SBI, despite its obvious size and market strength, will remain at present valuations for some time because news flow for PSU banks are expected to remain mixed in the medium term. A credit growth pick-up and NPL recovery/reversals would be the key for improvements in the valuations for SBI,” he added.

Last week, Nomura said that the time is ripe for Kotak to buy Axis Bank, a move that should help in diluting the promoter’s stake down to the requirements stipulated by the regulator. According to Nomura, Kotak Bank would gain liability and retail asset size enough to rub shoulders with HDFC Bank.

The brokerage’s call comes in the wake of Axis Bank CEO Shikha Sharma deciding to call time on her tenure at the bank by the end of the year.

The central bank has allowed Kotak Bank’s promoter Uday Kotak to bring down his holding in the bank to 15 per cent by 2020. Uday Kotak and his family currently hold 30.06 per cent stake in the bank. Foreign institutional investors’ holding in Kotak Bank stood at 39.56 per cent as on March 2018, while it was at 11.60 per cent for SBI.

Kotak Mahindra Bank Q3 profit rises 19.7%

January 19, 2018 Kotak Mahindra Bank, Private Banks, Q3 results, Q3FY18, Results No comments

Kotak Mahindra Bank Ltd on Friday said it reported 19.72% increase in its net profit for the December quarter due to higher net interest income (NII) and other income.

Net profit rose to Rs1,053.21 crore for the quarter ended 31 December from Rs879.76 crore a year ago. According to 17 Bloomberg analysts’ estimates, the bank was expected to post a net profit of Rs963.80 crore. On consolidated basis, the bank reported a net profit of Rs1,624 crore, up 28% from a year ago.

Kotak Mahindra Bank Q2 profit rises 22% on higher interest income

October 26, 2017 Kotak Mahindra Bank, Private Banks, Q2 Results, Q2FY18, Results No comments

Kotak Mahindra Bank Ltd on Wednesday reported a 22.26% rise in its September quarter net profit, beating analyst estimates, due to higher net interest income and other income.

The private lender reported standalone net profit of Rs994.31 crore in the quarter against Rs813.29 crore a year ago.

According to estimates of nine Bloomberg analysts, the bank was expected to post a net profit of Rs978.50 crore.

Kotak Mahindra Bank Q1 result, profit rises 23%

July 20, 2017 Kotak Mahindra Bank, Private Banks, Q1 Results, Q1FY18, Results No comments

Kotak Mahindra Bank Ltd on Thursday said its net profit for the June quarter rose 23% from a year ago due to higher net interest and other income.

Net profit for the quarter was Rs912.73 crore, up from Rs741.97 crore a year ago. Six analysts polled by Bloomberg had forecast a net profit of Rs963.40 crore. Net interest income (NII), or the core income a bank earns by giving loans, increased 17% to Rs2,245.55 crore from Rs1,919.10 crore last year. Other income jumped 23.7% to Rs906.88 crore from Rs733.18 crore in the same period last year.

Kotak Mahindra Bank Q4 result, profit rises 40% to Rs976 crore

April 27, 2017 Kotak Mahindra Bank, Private Banks, Q4 Results, Q4FY17, Results No comments

Private sector lender Kotak Mahindra Bank on Thursday reported a 40.34% rise in quarterly net profit for the year ended quarter, beating market estimates.

March quarter net profit at Kotak Mahindra Bank rose to Rs976.48 crore from Rs695.78 crore a year ago, on the back of higher net interest income and other income. According to estimates of 13 Bloomberg analysts, the bank was expected to post a net profit of Rs972.70 crore.

Top 10 Private Banks in India 2017

March 09, 2017 Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Karur Vysya Bank, Kotak Mahindra Bank, News&Articles, Private Banks, RBL Bank, Top Banks, Yes Bank 49 comments

Banking corporations are considered as the most prominent institution if we talk about private sector firms. We have scrutinized Top 10 Private Banks In India 2017 for the customers who are looking for best private banks with high interest rate. Now your wait is over, check out below given amazing private banking corporations along with saving accounts and interest rate details. The Private Banks Have earned popularity amongst people and achieved a special niche in the world of banking. These banks are known for highly competitive outlook and technological superiority. Check Out private Banks in India from below This Page.

Kotak Mahindra Bank Q3 result, Profit rises by 39%

January 25, 2017 Kotak Mahindra Bank, Private Banks, Q3 results, Q3FY17, Results No comments

Kotak Mahindra Bank on Wednesday reported a 38.60% increase in net profit on the back of increase in net interest income and other income.Net profit for the quarter increased to Rs879.76 crore compared with Rs634.72 crore a year ago. According to estimates of nine Bloomberg analysts, the bank was expected to post a net profit of Rs815.40 crore.

Net interest income (NII), or the core income a bank earns by giving loans, rose 16.08% to Rs2050.32 crore in the December quarter from Rs1766.21 crore last year.

Other income increased 26.04% to Rs910.22 crore in the third quarter from Rs722.16 crore in the same period last year.Gross non-performing assets (NPAs) of Kotak Mahindra Bank decreased marginally to Rs3,177.88 crore at the end of the December quarter from Rs3,180.66 crore in the September quarter.

As a percentage of total loans, gross NPAs were 2.42% at the end of the December quarter compared with 2.49% in the previous quarter and 2.30% a year ago.Provisions and contingencies fell 18.34% to Rs192.10 crore in the third quarter from Rs235.25 crore a quarter ago.Net NPAs rose to 1.07% in the December quarter compared with 1.20% in the previous quarter and 0.96% in the same quarter last year.

Kotak Mahindra Bank Q2 result, Profit rises 27.66% to Rs1,194.96 crore

October 25, 2016 Kotak Mahindra Bank, Private Banks, Q2 Results, Q2FY17, Results No comments

Private sector lender Kotak Mahindra Bank has reported a whopping 42.8 percent growth in second quarter standalone profit at Rs 813.3 crore compared with year-ago period.

The growth was driven by strong net interest income, other income and operating profit. Net interest income grew by 18.9 percent year-on-year to Rs 1,995.3 crore in July-September quarter, which was in-line with estimates.

Net interest margin expanded to 4.47 percent from 4.3 percent YoY. "Advances were up 13 percent YoY to Rs 1.26 lakh crore while saving accounts deposits grew by 35 percent to Rs 30,678 crore and current accounts increased by 28 percent to Rs 19,273 crore," the bank said in its filing.

Standalone operations include only core banking business while consolidated earnings comprise of banking as well as brokerage, mutual fund etc. Profit beat analysts’ estimates, which was expected at Rs 777.5 crore and net interest income estimated at Rs 1,970 crore for the quarter, according to analysts polled by CNBC-TV18.

Asset quality was stable during the quarter with standalone gross non-performing assets (NPA) at 2.49 percent against 2.50 percent and net NPA at 1.2 percent against 1.21 percent on sequential basis but in absolute terms, it weakened a bit. In absolute terms, gross NPA increased 4 percent quarter-on-quarter to Rs 3,180.6 crore and net NPA rose 3.4 percent to Rs 1,516.7 crore in Q2.

Kotak Mahindra Bank Q1 Result, Profit double

July 21, 2016 Kotak Mahindra Bank, Private Banks, Q1 Results, Q1FY17, Results No comments

Kotak Mahindra Bank Ltd’s June-quarter profit more than doubled from a year ago as it earned more interest income and collected higher fees and commissions.

On a stand-alone basis, the bank reported a net profit of Rs.741.97 crore compared to Rs.189.78 crore a year ago. Net interest income rose 20.1% from a year ago to Rs.1,919.10 crore.

The numbers for the current quarter are not comparable with last year’s because the bank had taken pension provisions and one-time stamp duty charges worth nearly Rs.400 crore, after it began the procedure of merging ING Vysya Bank with itself in April 2015.

“All through the last financial year, we were trying to make sure that both banks are merged properly and all processes are integrated. That integration is now over and we should start seeing the benefits of it going ahead now. We are expecting our return on assets to improve and our cost-to-income ratio to come down steadily,” said Dipak Gupta, executive director, Kotak Mahindra Bank.

Kotak Mahindra Bank’s Q4 profit rises 32% to Rs696 crore

May 11, 2016 Kotak Mahindra Bank, Private Banks, Q4 Results, Q4FY16, Results No comments

Kotak Mahindra Bank on Wednesday reported a 32% rise in net profit for the quarter ended 31 March on account of a rise in net interest income and a largely stable asset quality. Net profit rose to Rs.695.78 crore from Rs.527.14 crore a year ago.

The bank said that results for the quarter and the fiscal year cannot be compared with previous periods because of the merger of ING Vysya Bank on 1 April 2015.

NII, or the difference between interest earned on loans and paid on deposits, for the quarter stood at Rs.1,857.24 crore, an increase of 65% from Rs.1,123.17 crore a year ago. The increase in NII was primarily due to the merger of ING Vysya Bank with Kotak Mahindra Bank, which became effective 1 April 2015.

NII rose 5.15% from Rs.1,766 crore in the preceding quarter.

Total advances as on 31 March rose 79% to Rs.1.19 trillion from Rs.66,161 crore a year ago. It rose by nearly 3% on a quarter-on-quarter basis. Uday Kotak, executive vice-chairman and managing director, said the lender is targeting 20% growth in advances for the current fiscal year and hopes to get the growth in both corporate and retail book.

Top 10 Private Banks in India 2016

February 01, 2016 Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IndusInd Bank, J & K Bank, Karur Vysya Bank, Kotak Mahindra Bank, Private Banks, Top Banks, Yes Bank No comments

In Indian economy Private bank is the most regulated sector and most of the citizens prefer private banks because these banks provide quality services to their customers. They generate more profit than most of the nationalized banks and thus these banks have great importance in countries national income. These banks are famous for quality based products and customer centric service. If you are hungry for the best private sector banks, then don’t miss to read this article. Here is a valuable list of top 10 best private banks India.

1. HDFC Bank

HDFC Bank or Housing Development Finance Corporation Limited is the number one bank in India according to the market capital and is in 5^th position according to assets value. It is the first private bank in India that received RBI approval to establish a bank. It has more than 3200 branches all over India and 12000+ ATM’s. At present the bank is dealing these services: FOREX services, Loans, Insurance, Credit cards, Private Banking, Premium Banking etc.

2. ICICI Bank

According to the quantity of assets, ICICI Bank or the Industrial Credit and Investment Corporation of India is the 2^nd largest private bank that was formed in 1994. In 2014, the bank was awarded with the best bank by Global Business Development. The bank has current assets value is 99 billion USD and all over India it has 3540 branches and 11200 ATM’s. At present the bank is dealing these services: Privilege Banking, NRI Accounts, Credit cards, Insurance, Loans, etc.

3. Axis Bank

Formally known as UTI Bank, Axis bank is also a leading private bank in India that is operating its service from 1994. It occupies 3^rd position in Indian banking market. This bank deals with the services like: customer and corporate banking, insurance and finance, credit cards, mortgage loans, investment banking, wealth management, credit cards etc.

4. Kotak Mahindra Bank

Formally the bank was known as Kotak Mahindra Finance Limited and was established in 1995 and got license to run banking business in 2003. The bank is available not only in Metro Cities but available also in Tier-2 cities. At present the bank is dealing these services: NRI Banking, Privileged Banking, Insurance and Finance, Wholesale Banking etc.

5. Yes Bank

In the list of 10 top best banks, Yes bank occupies 6^th position. In January 2004, the bank was founded by Rana Kapoor and it’s headquarter is in Mumbai. This is one of the fast growing private banks in India with 500 branches in more than 350cities. In 2013 the bank was awarded with Golden Peacock Award for its Corporate Social Responsibility. At present the bank is dealing these services: Commercial Banking, Corporate and Institutional Banking, Investment Banking, Branch Banking etc.

6. Federal Bank

This bank was founded in the year 1947 and was formally known as Travancore Federal Bank. The founder of this bank is Mr. K P Hormis. The bank has more than 1000 branches all over the country. From its first day of operation the bank is striving for excellence in customer service. At present the bank is dealing these services: Insurance and NRI Banking, Corporate Banking, Loans etc.

7. Karur Vysya Bank

Karur Vysya Bank is also a well-known figure in this top 10 best private bank list. The bank was founded by M.A. Venkatarama Chettiar and Athi Krishna Chettiar in 1916. It’s headquarter is in Karur, TamilNadu. This is also a scheduled commercial bank in India that is famous for excellent customer service. Karur Vysya Bank has more than 550 branches in 18 states.

8. IndusInd Bank

The bank was founded in 1994 by Srichand P. Hinduja. He was the Chairman of the Hinduja Group. It’s headquarter is in Mumbai, Maharashtra. The name of the bank came from the name of the Indus Valley Civilization. This bank is better known for retail banking.

9. J&K Bank

This bank was founded in 1938 in Srinagar and started its operation in 1939. For four decades it has a record of continuous profit.

10. Bandhan Bank

It is an Indian banking and financial services company. It’s headquarter is in Kolkata. Along with IDFC Bandhan is also the newest private bank in India. Bandhan receives its license from RBI in 2014 and started its operation in early 2015.