Kotak Mahindra Bank profits jump 23% in Q3

Kotak Mahindra Bank performed better than what analysts estimated for its quarterly results. Driven by strong loan growth, the bank's net profit rose by 23% year-on-year to Rs 1,291 crore in the quarter ended December, as mentioned in the bank's exchange filing. Analysts estimated the bank to make Rs 1,190 crore in profits.

Net interest income of the bank, which is the difference between interest earned and expended, also rose 27% to Rs 2,939 crore, higher than the estimate of Rs 2,633 crore. Net interest margin increased to 4.33% to 4.2% in the previous quarter. The company also said in a statement that the bank's profit and revenue were helped by a rise of 23% in total advances that stood at Rs 1,96,432 crore as on December 31.

The bank's asset quality also improved during the quarter. Gross non-performing assets ratio fell from 2.15% in the preceding quarter to 2.07% this quarter. Additionally, net bad loans also dipped from 0.71% to 0.81%.

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Top 10 Banks in India 2018

In India banking sector is one of the most regulated sectors in the economy. When Indian Government allowed private banks to operate in the nation many banks came into existence and gave a tough competition to various nationalized players. Private Banks won over most nationalized banks because of the quality of services they offered to their customers. With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India. So, which banks provide the best services?

Although Indian banking is known as world’s best banking but we can’t point out any single bank which provides best banking among all. Because i don’t think that even a single person is satisfied with service sector industry. Our expectation is too high and always running on increasing trend. Like; all customers are not same, all banks are not same. The behavior of employees perceive in different manner by different people. Because due to competition there is a huge change can feel in working style of PSU & Private sector banks which covers only limited area & they have too many complaints also. So we can’t point out any single name. Nowadays banking industry is totally changed, I m talking about the service quality of PSU banks. Lots of customer centric approach is applied today, now banks are more concerned about the customer retention. So if we go through the customer service delivery system of bank of Baroda it will now at par with the peer banks. Their services is now become centralized, a new retail loan factory concept is introduced by the bank which will help to improve the quality of loan,it also reduces the delivery time and make it more customer friendly.

In Short, Try to obtain the benefits of monopolistic competition between PSUs and private sector banks. It is good for retail customers because they always have choice to shift their banking.

We are going to give rank to the banks as per belove Individual Parameters

• Disclosure about charges and interest rates
• Pro-active communication about new products/services
• Trustworthiness
• Complaint Resolution
• Wide ATM coverage
• Professionalism of the company
• Convenient banking hours
• Well-trained staff
• Courteous and friendly staff
• Faster service at branches
• Knowing the customer and their needs
• Good Internet banking
• Efficient processes
• Effective communication on developments
• Innovative company
• Good phone banking

Here’s the list:

1. HDFC Bank

HDFC was established as Housing Development Finance Corporation in the year 1994.The operations of the bank started in 1995 after it was scheduled as a commercial bank.The bank has served well since then and still continues to bring in more and more costumers with its phenomenal services. Bank’s distribution network was at 4,555 branches and 12,087 ATMs across 2,597 cities / towns. HDFC is the largest bank in India in terms of assets.The total assets of the bank are estimated to be around $66.7 Billion.The Current CEO of the bank is Aditya Puri.

2. State Bank Of India

The largest Indian Bank which has the maximum number of branches in the country as well as abroad.The Bank has many sub-branches as well which serve the maximum number of consumers in India.The Bank was nationalized in the year 1955.The total assets of the bank are much more than any other bank.As of 31 March 2018, SBI has more than 22400 branches,including 52 foreign offices spread across 36 countries and 59541 ATMs. 

3. Bank Of Baroda

Bank of Baroda is one of the largest public sector banks in India. The services of the bank have always been satisfying and par excellence. The bank was set up in 1908 and the current CEO of the bank is Mr. P. S. Jayakumar. The total assets of the bank are somewhat closer to $70 Billion. The bank has 5498 branches including  107 overseas branch and over 10441 ATMs including the ones outside India.

4. Axis Bank

The Bank was founded in 1993 and the headquarters resides in Mumbai, Maharashtra. It has more than 3700 branches in India.The bank was an investment of some prominent international companies.The total worth of the bank is $96 Billion.The bank is known for its hassle free services throughout the country. Bank has 3710 branches, 13,857 ATMs, and nine international offices.

5. Punjab National Bank

One of the oldest banks in the country, the establishment of the Punjab National Bank goes back to 1894, more than 100 years from now.This is one of the oldest public sector banks in India.The total assets of the bank are more than $101 Billion. Bank has over 6,983 branches and over 9598 ATMs nationwide. The Chief Executive Officer of the bank is Sunil Mehta.

6. ICICI Bank

ICICI stands for Industrial Credit and Investment Corporation of India and it was established in 1994.It is one of the best banks in the country with assets worth more than $160 Billion. Sandeep Bakhshi works as the CEO of the bank.The Bank has been operational in 18 countries as of now.The Bank also acquired Bank of Rajasthan in the year 2010. ICICI has adopted a Go Green initiative in which it has started most of its operations in electronic form.Even the bank statements are sent via e-mails. Bank has a network of 4867 Branches and 14,417 ATM's has a presence in 19 countries including India.

7. Kotak Mahindra Bank 

Kotak Mahindra Bank is an Indian private sector bank headquartered in Mumbai, Maharashtra, India. In February 2003, Reserve Bank of India (RBI) issued the licence to Kotak Mahindra Finance Ltd., the group's flagship company, to carry on banking business. Kotak Mahindra Bank has a network of 1425 branches across 689 locations and 2,363 ATMs in the country (as of 31 March 2018). In 2018, it is the second largest private bank in India by market capitalization after HDFC Bank.

8. Canara Bank

Like other major public sector banks, Canara Bank is also state owned and was set up in the year 1906 by Subba Rao.The headquarters of the Bank reside in Bengaluru, Karnataka. The Bank provides hassle free service to its customers . Bank has revolutionized its services and spreads its hands more to cover more areas.As per the data of 2018, the Bank has 6212 branches and 9395 ATMs across the nation.The total assets of the bank $88 Billion which are set to increase in the coming years.

9. Bank Of India

Bank of India is one of the major public sector banks in India.The bank became government owned after the nationalization of Banks in 1969, though the bank was founded much before that in 1906.CEO of Bank of India is Dinbandhu Mohapatra. The total assets of the bank are around $97 Billion .Bank of India has 5127 branches as on 31 May 2018, including 29 offices outside India and more than 7000 ATMs nationwide.

10. IDBI Bank 

IDBI stands for Industrial Development Bank Of India and was established in the year 1964. It is a Public sector bank. The total assets of the bank reach to about $50 Billion. There are 1916 branches including one overseas branch at Dubai and 3276 ATMs across the country. Investment Banking and Agro-Loan facilities are the USP of the bank. Mr. Maheshkumar K. Jain is the Chief Executive Officer of the Bank.

So, guys this was some very basic information about the Top Banks in the Country. We just hope to satisfy you with whatever we write and you can also help us improve by giving the feedback to our written posts.If you loved our writings, do share it with your friends.

(data as on 31st May,2018)

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Kotak Mahindra Bank Q2 profit rises 15%

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.

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Kotak Mahindra Bank reports 12% rise in profit

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.

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Kotak Mahindra Bank Q4 net profit rises 15%

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.

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Kotak Mahindra Bank becomes 2nd most valuable lender

                                               

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. 

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Kotak Mahindra Bank Q3 profit rises 19.7%

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.

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

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.

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