Kotak Mahindra Bank Q2 Results: Standalone profit falls 7%

Private sector lender Kotak Mahindra Bank on October 26 reported a 7 percent year-on-year decline in standalone profit at Rs 2,032 crore for the September 2021 quarter due to higher provisions. But supported by higher other income, the profit was ahead of analysts' estimates. However, net income sequentially grew by 24 percent on sharp decline in bad loan provisions.

Standalone net interest income in Q2FY22 rose 3.2 percent year-on-year to Rs 4,020.6 crore - meeting street expectations - with healthy 15 percent YoY (8 percent QoQ) loan growth. Net interest margin contracted 5 bps year-on-year and 15 bps sequentially to 4.45 percent in Q2.

"Advances during the quarter increased by 14.7 percent to Rs 2,34,965 crore, and deposits grew by 11.5 percent to Rs 2,91,711 crore compared to year-ago period," said the bank in its BSE filing on Tuesday.

Profit was estimated at Rs 1,792.2 crore and net interest income was expected at Rs 4,008.1 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Asset quality improved during the quarter ended September 2021 with gross non-performing assets as a percentage of gross advances falling 40 bps QoQ to 3.2 percent and the net NPA declined 20 bps to 1.1 percent on sequential basis. 10 basis points is 0.01 percent.

Provisions and contingencies declined sharply by 40 percent sequentially to Rs 424 crore in September 2021 quarter, but the same increased by 27.3 percent year-on-year which resulted into a drag in profitability.

Kotak Mahindra Bank said Covid related provisions as of September 2021 were maintained at Rs 1,279 crore and did not utilise in the first half of FY22. "The bank has implemented total restructuring of Rs 495 crore (0.21 percent of advances), and in addition, the bank has implemented total restructuring of Rs 767 crore (0.33 percent of advances) as on September 30, 2021."

"Total provisions (including specific, standard, COVID-19 related etc.) held as on September 2021 at Rs 7,637 crore, around 100 percent of gross NPA," the bank said.

The bank further said SMA-II (special mention account) outstanding at the end of September 2021 quarter was at Rs 388 crore, down compared to Rs 430 crore as of June quarter.

Non-interest income (other income) grew significantly to Rs 1,812.6 crore in the quarter ended September 2021 driven by fee and services business, up from Rs 1,432.4 crore in corresponding quarter of last fiscal. Fee and services included distribution & syndication income, and general banking fees.

On consolidated basis, the profit growth was significant, rising 65.5 percent year-on-year to Rs 2,989 crore and the year-on-year growth was 1.4 percent.

Subsidiaries - Kotak Securities recorded 22.1 percent year-on-year growth in profit at Rs 243 crore and Kotak Mahindra Prime clocked 80.5 percent growth in profit at Rs 240 crore in the quarter ended September 2021.

Kotak Asset Management and Trustee Company's bottomline grew by 15.5 percent year-on-year to Rs 97 crore and Kotak Mahindra Capital Company registered a massive 314.3 percent growth YoY at Rs 58 crore, but Kotak Mahindra Life Insurance's profit declined 9.4 percent YoY to Rs 155 crore during the quarter.

The bank said consolidated customer assets grew by 16 percent year-on-year to Rs 287,831 crore as of September 2021. "Total assets managed / advised by the Group as of September 2021 were Rs 3,81,058 crore, up 40 percent over the corresponding period last fiscal."

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Kotak Mahindra Bank Q1 results: Net profit rises 32% YoY

Kotak Mahindra Bank today reported a 32 per cent year-on-year rise in its net profit to Rs 1,641.9 crore for the quarter ended June, which was below analysts’ expectations.The private sector lender reported net interest income growth of 6 per cent on-year to Rs 3,942 crore, which was also below analysts’ estimates.

Provisions and contingencies in the quarter declined to Rs 935 crore from Rs 962 crore in the year-ago quarter. However, the lender saw a deterioration in asset quality in the reported quarter.Kotak Bank’s gross non-performing loans ratio stood at 3.56 per cent in the reported quarter as against 3.25 per cent at the end of the March quarter. Similarly, the net NPA ratio expanded to 1.28 per cent from 1.21 per cent in the previous quarter.

The private sector bank’s net profit in the quarter was largely boosted by a sharp uptick in other income. Other income in the reported quarter jumped to Rs 1,583.03 crore from Rs 773.5 crore in the year-ago quarter.

Covid-related provisions as on June 30 were maintained at Rs 1,279 crore. In accordance with the Resolution Framework for Covid-19 and MSME announced by the RBI, the bank implemented total restructuring of Rs 552 crore as on June 30, Kotak Bank said.

In terms of loan growth, the quarter was tepid for the bank affected by the second wave as well as its conservative approach. Advances in the quarter grew merely 6 per cent on-year, which was lower than many of its peers.

At the same time, the current account-to-savings account ratio of the lender further improved to 60.2 per cent at the end of the June quarter from 56.7 per cent a year ago.Kotak Bank’s operating performance was sturdy as operating profit jumped 19 per cent year-on-year to Rs 3,121 crore in the reported quarter.

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Kotak Mahindra Bank Q4 results: Net Profit Rises 33%

 

Kotak Mahindra Bank reported a 33% year-on-year increase in standalone profit to Rs 1,682.4 crore in the quarter ended March 2021. The lender clocked 8% year-on-year rise in net interest income to Rs. 3,843 crore for the quarter. Net Interest Margin (NIM) for Q4FY21 was at 4.39%. Operating profit for the quarter recorded at Rs 3,407 crore, up 25% from Rs 2,725 crore in Q4FY20.

The average savings deposits with the bank grew by 27% to Rs 108,812 crore for FY21 compared to Rs 85,656 crore for FY20. Average Current Account deposits grew by 17% to Rs 39,481 crore for FY21 compared to Rs 33,699 crore for FY20.

Advances were Rs 223,689 crore in Q4FY21, 4.5% quarter-on-quarter rise from Rs 214,103 crore in December quarter. Customer assets, which includes advances and credit substitutes, were Rs 238,857 crore as during March 31, up 4.4% from Rs 228,809 crore in Q3FY21.

CASA ratio as at March 31, 2021 stood at 60.4% compared to 56.2% as at March 31, 2020. “CASA and TDs below Rs 5 crore as at March 31, 2021, constituted 91% of total deposits (86% as at March 31, 2020). TD Sweep deposits as at March 31, 2021 were 7.5% of total deposits (6.6% as at March 31, 2020)," the lender said in a statement.

The gross non-performing assets ratio stood at 3.25% during Q4FY21 compared to 3.27% in the previous quarter. Net NPA ratio declined to 1.21%, from 1.24% in the previous quarter.

“COVID related provisions as at March 31, 2021 stood at Rs 1,279 crore. In accordance with the Resolution Framework for COVID-19 and MSME announced by RBI, as at March 31, 2021, the bank has implemented, for certain eligible borrowers, restructuring of Rs 435 crore," Kotak Mahindra said in a statement.

“Consolidated PAT for FY21 increased to Rs 9,990 crore from Rs 8,593 crore in FY20 up 16% and for Q4FY21 increased to Rs 2,589 crore from Rs 1,905 crore in Q4FY20 up 36%," the lender said in a statement. For FY21, the Bank’s contribution to the consolidated PAT was Rs 6,965 crore. Net contribution of the subsidiaries & associates stood at 30% of the consolidated PAT, it further added.

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Kotak Mahindra Bank Q3 results: Net profit rises 16%

Kotak Mahindra Bank today reported a 16% year-on-year rise in its standalone net profit for third quarter ended December 31. Net profit rose to Rs.1,854 crore, from Rs.1,596 crore in Q3FY20, up 16%. Share prices were up about 2% in noon trade.

Highlights of Kotak Mahindra Bank Q3 results:

Net Interest Income (NII) for Q3FY21 increased to Rs.4,007 crore, from Rs.3,430 crore in Q3FY20, up 17%.

Net Interest Margin (NIM) for Q3FY21 was at 4.51%.

CASA ratio as at December 31, 2020 stood at 58.9% compared to 53.7% as at December 31, 2019.

Advances as at December 31, 2020 were at Rs.214,103 crore ( Rs. 204,845 crore as at September 30, 2020 and Rs.216,774 crore as at December 31, 2019)

As at December 31, 2020, GNPA was 2.26% & NNPA was 0.50%.

"The Bank has not classified any NPAs since August 31, 2020, basis the interim order of Hon. Supreme Court. Had the Bank classified the borrowers more than 90 days overdue on December 31, 2020 as NPA, GNPA would be 3.27% September 30, 2020: 2.70%); NNPA would be 1.24% (September 30, 2020: 0.74%). The Bank has, however, made provision for such advances including towards interest accrued but not collected for the entire period, with moratorium," the bank said.

Capital adequacy ratio of the Bank as per Basel III, as at December 31, 2020 was 21.5% and Tier I ratio was 20.9%

COVID related provisions as at December 31, 2020 stood at Rs.1,279 crore. In accordance with the Resolution Framework for COVID-19 announced by RBI on August 6, 2020, as at December 31, 2020, the Bank has approved, for certain eligible borrowers, one-time restructuring of 0.28% of net advances.

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Kotak Mahindra Bank Q2 net profit rises 26%

Private sector lender Kotak Mahindra Bank on Monday reported 26% jump in net profit for quarter ending 30 September, 2020 at Rs.2,184 crore. It was Rs. 1,724 crore a year ago.

Net interest income for Q2FY21 increased to Rs.3,913 crore, from Rs.3,350 crore in Q2FY20, up 17%. Net interest margin (NIM) for Q2FY21 was at 4.52%.The total income (standalone) rose to Rs.8,288.08 crore in the July-September period as against Rs.7,986.01 crore in the year-ago period.

CASA ratio as on 30 September, 2020 stood at 57.1% compared to 53.6% as on 30 September, 2019.Average savings deposits grew by 32% to Rs.1,06,442 crore for H1FY21 compared to Rs.80,425 crore for H1FY20.

Advances as on 30 September, 2020 were at Rs.2,04,845 crore as compared to Rs.2,13,299 crore as on 30 September, 2019).Covid-related provisions as of 30 September, 2020 stood at Rs.1,279 crore (0.62% of net advances).

The bank's asset quality improved on a net basis, with the non-performing assets (NPAs) falling to 0.64 per cent of the net advances as of September 30, 2020, from 0.85 per cent by September-end 2019.

In value terms, the net NPAs were down at Rs.1,303.78 crore compared to Rs.1,811.40 crore.However, the gross NPAs rose to 2.55 per cent ( Rs.5,335.95 crore) from 2.32 per cent ( Rs.5,033.55 crore).

Provisions for bad loans and contingencies came down to Rs.368.59 crore for the reported quarter, from Rs.407.93 crore parked aside for the year-ago period. "The Bank has not recognised any NPAs since 31 August, 2020, in line with the interim order of Supreme Court. If the said Order was not given effect to, the GNPA would have been 2. 70% and NNPA 0.74%. The Bank has, however, made provision for such advances," the bank said in a stock exchange filing.

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Kotak Mahindra Bank Q4 results: Profit falls 10% YoY

Kotak Mahindra Bank on Wednesday reported a 10 per cent year-on-year (YoY) fall in standalone net profit at Rs 1,267 crore for the March quarter against Rs 1,408 crore posted in the same quarter last year.

The figure, however, beat ET NOW poll estimate of Rs 1,200 crore profit for the quarter.

The bank said it made Covid-19-related general provisions worth Rs 650 crore for the quarter, which were higher than the RBI requirement.

bank's provisions and contingencies for the said quarter stood at Rs 1,047 crore, over five times the Rs 171 crore-provisions the private lender reported in the corresponding quarter of last year.

Total provisioning towards advances were higher than the GNPA of the bank, Kotak said.

Net Interest Income (NII) for the quarter rose 17.25 per cent to Rs 3,560 crore from Rs 3,036 crore in the year-ago qaurter.

The bank said 26 per cent of borrowers by value at account level availed the RBI moratorium. Covid provisioning, it said, stood at 10 per cent of account level.

Gross non-performing assets (NPAs) for the quarter stood at 2.25 per cent, which was higher than December quarter's 2.14 per cent but lower than 2.46 per cent in the year-ago quarter.

Total slippages for the quarter more than halved to Rs 491 crore in Q4 from Rs 1,062 crore in the same quarter last year.

Advances at the end of March quarter were up 7 per cent YoY at Rs 2,19,748 crore against Rs 2,05,695 crore in the corresponding quarter last year.

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Kotak Mahindra Bank Q3 net profit up 23.6% t

Kotak Mahindra Bank Ltd on Monday reported a 23.6% year-on-year increase in its standalone net profit for the December quarter to ₹1,595.90 crore, largely led by higher other income and lower tax expenses. Sequentially, however, net profit declined 7.5%.

The private lender’s net interest income (NII) rose 17.2% year-on-year to ₹3,429.53 crore during October-December. On a quarterly basis, NII rose 2.4%.

Other income surged 37.34% from a year ago to ₹1,341.43 crore during the reporting quarter.

Lower tax outgo also boosted the lender’s bottomline. Tax expenses stood at ₹348.17 crore, down 48.8% from a year ago.

Asset quality weakened during the quarter, with gross non-performing assets (NPAs) increasing 31.1% year-on-year to ₹5413.20 crore. Gross NPAs as a percentage of advances for the quarter was at 2.46% compared with 2.32% a quarter ago and 2.07% a year ago. Provisions and contingencies of the lender stood at ₹444 crore during October-December, up 8.5% from ₹407.93 crore in the last quarter.

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Kotak Mahindra Bank Q2 profit jumps 51%

Kotak Mahindra Bank reported a 51 percent year-on-year jump in the net profit at Rs 1,724.5 crore for the quarter ended September 30, 2019.

A CNBC-TV18 poll had estimated the profit to the tune of Rs 1,555.2 crore for Q2FY20.

The private lender had reported a net profit of Rs 1,141.65 crore in the corresponding quarter of the previous financial year.

Net interest income (NII) of the bank jumped 25.2 percent, coming at 3,349.6 crore against 2,676.3 crore in the corresponding quarter of FY19. Net interest margin (NIM) for Q2FY20 came at 4.61 percent, up from 4.19 percent in Q2FY19.

The bank said, its CASA ratio as on September 30, 2019, stood at 53.6 percent, compared to 50.2 percent as on September 30, 2018.

Average savings deposits grew by 20 percent YoY to Rs 80,425 crore for Q2FY20 compared to Rs 66,892 crore for Q2FY19. The average current account deposits grew by 22 percent to Rs 33,216 crore for Q2FY20 compared to Rs 27,231 crore for Q2FY19.

However, the bank's non-performing assets (NPAs) increased slightly during the September quarter.

Gross NPA stood at 2.32 percent in the September quarter against 2.19 percent in the June quarter. Net NPA came at 0.85 percent against 0.73 percent quarter-on-quarter.

In monetary terms, gross NPA stood at Rs 5,033.5 crore against Rs 4,613.5 crore quarter-on-quarter (QoQ), whereas Net NPA came at Rs 1,811.4 crore against Rs 1,524.4 crore (QoQ).

Provisions stood at Rs 408 crore against Rs 316.8 crore (QoQ) and Rs 354 crore (YoY).

The net interest margin improved slightly, coming at 4.61 percent against 4.49 percent (QoQ).

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