AU Small Finance Bank Q4 Profit falls 13%

 

AU Small Finance Bank on Wednesday reported a 12.7 per cent fall in profit at Rs 371 crore in March quarter due to increased provisions and a one-time expense for acquisition of Fincare. The bank's net profit was Rs 425 crore in the year-ago quarter.Net profit, excluding exceptional items, stood at Rs 428 crore in the fourth quarter of FY24, up 1 per cent compared to Rs 425 crore in the corresponding period a year ago.

The net profit of the bank in the full financial year 2023-24 rose by 7.4 per cent to Rs 1,535 crore as against Rs 1,428 crore in the previous fiscal.During the latest fourth quarter, the bank's total income increased to Rs 3,385 crore as compared to Rs 2,608 crore in Q4 of FY23, AU Small Finance Bank said in a regulatory filing.Net Interest Income (NII) grew 10 per cent to Rs 1,337 crore compared to Rs 1,213 crore in Q4 FY23, it said.

The bank declared a dividend of Rs 1 per share for FY24 subject to shareholders' approval.
Bank's asset quality witnessed a marginal deterioration with gross NPA (non-performing asset) at 1.67 per cent in March 2024 as against 1.66 per cent in March 2023.

Net NPA stood at 0.55 per cent of net advances in March 2024 as against 0.42 per cent in the year-ago period.As a result, provisions and contingency increased to Rs 132 crore from Rs 40 crore in the fourth quarter of preceding fiscal.

Besides, there was a one-time exceptional expenditure during the quarter. The expense amounting to Rs 76.80 crore, including stamp duty, has been incurred in relation to the acquisition and merger of Fincare Small Finance Bank, it said.

Considering the size, nature or incidence of these expenses, the same has been disclosed as exceptional item in the balance sheet, it added.During the reporting quarter, former RBI Deputy Governor H R Khan was appointed as chairman of the AU Small Finance Bank.The bank, during the quarter, started offering products and services to customers under the Authorized Dealer Category I (AD Cat-I) licence.

Sanjay Agarwal, founder, MD & CEO, of AU Small Finance Bank, said, "Our performance in the current quarter has remained absolutely on track with deposit growth outpacing advances growth, margins broadly remaining within our guided range and asset quality continuing to be robust." 

The merger with Fincare has received all regulatory approvals in record time, and from April 1, the merged entity has been operational as per the RBI's direction, he said.

The focus now shifts to ensuring a smooth and seamless integration within the next 9-12 months and delivering exceptional banking services and value to the customers, he said.

To ensure seamless transition and minimal customer disruption due to the merger, both the tech-led banks with their strong customer orientation have established a dedicated task force and equipped their call centres to answer all customer queries, he added.

AU Small Finance Bank (AU SFB) last month amalgamated Fincare Small Finance Bank (Fincare SFB), marking the first such consolidation in the sector.In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fincare SFB received 579 equity shares in AU SFB for every 2,000 equity shares held in Fincare SFB, the merger received final approval from RBI on March 4, 2024, with the effective date of April 1, 2024.With the merger, the bank now has 2,383 physical touchpoints across India.

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IDFC First Bank Q4 results: Net profit falls 10%

IDFC FIRST Bank on Saturday reported 10 per cent decline in net profit at Rs 724 crore for the fourth quarter ended March 2024 due to substantial jump in provisions.

The lender had earned a net profit of Rs 803 crore in the year-ago period.

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Total income rose to Rs 9,861 crore from Rs 7,822 crore a year ago, IDFC FIRST Bank said in a regulatory filing. Interest income grew to Rs 8,219 crore during the period under review, from Rs 6,424 crore in the corresponding quarter a year ago.Net Interest Income (NII) grew 24 per cent from Rs 3,597 crore in Q4FY23 to Rs 4,469 crore in Q4FY24, it said.

ALSO READ: RBL Bank Q4 results: PAT jumps 30% to Rs 353 crore

On the asset quality side, the bank's gross Non-Performing Assets (NPAs) reduced to 1.88 per cent of gross advances as of March 31, 2024, from 2.51 per cent by the end of March 2023.Net NPAs also came down to 0.60 per cent of the advances from 0.86 per cent at the end of 2024.

However, provisions and contingencies increased by 50 per cent to Rs 722 crore in Q4FY24 as compared with Rs 482 crore a year ago.The bank did not declare any dividend for FY24 and FY23.

The capital adequacy ratio of the bank declined to 16.11 per cent from 16.82 per cent at the end of previous fiscal.

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RBL Bank posts net profit of ₹352.5 crore in Q4

RBL Bank on Saturday, April 27, reported its fourth quarter results. It's net profit came in at Rs.352.5 crore, which was more than estimates.

The lender's net profit in the March quarter was also 30.1% more than the Rs.271.1 crore net profit it reported in the corresponding period in the previous fiscal.

RBL Bank's net interest income (NII) of Rs.1,599.8 crore in the fourth quarter was lower than Street estimates of Rs.1,604.7 crore. However, it was 17.9% higher than the fourth quarter of the previous fiscal's Rs.1,357.3 crore.

The lender's gross net performing assets decreased 11% to Rs.2,271 crore in the fourth quarter of the 2023-2024 fiscal, compared to the previous year's Rs.2,551 crore. RBL Bank's gross NPA % came down to 2.65% from the previous year's 3.12%

Its net NPA too witnessed a 2.6% decrease to Rs.619.3 crore in the March quarter from the previous year's Rs.635.6 crore. The lender's net NPA% was down 6 bps to 0.74% in the March quarter from the previous year's 0.8%.

Its net NPA too witnessed a 2.6% decrease to Rs.619.3 crore in the March quarter from the previous year's Rs.635.6 crore. The lender's net NPA% was down 6 bps to 0.74% in the March quarter from the previous year's 0.8%.

It's net interest margin (NIM) for the March quarter was 5.45%. In the previous quarter the same was 5.52% and in the fourth quarter in FY23 it was 5.62%.

RBL Bank in a media call stated it expects the first quarter margin for FY25 to be flattish and it expects the NIM to rise by the year-end. The lender added that it will do lateral hiring against deaprtment head resignations that have taken place.

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IndusInd Bank Q4 Results: Net Profit up by 15%

Private sector lender IndusInd Bank recorded a net profit of Rs 2,349 crore for the January-March quarter of fiscal year (FY) 2023-24, up 15 per cent from Rs 2,043 crore in the previous year. The net profit, at Rs 2,349 crore, exceeds the market forecast of Rs 2,261 crore.

In its quarterly statement earlier this month, the bank reported that net loans increased by 18 per cent, exceeding a 14 per cent increase in deposits.

The bank’s gross non-performing asset (NPA) ratio fell to 1.92 per cent from 1.98 per cent in the same period last year. In contrast, net NPA for the quarter was 0.57 per cent, up from 0.59 per cent the previous year.

Also Read |  ICICI Bank Q4 Net Profit Rises 17.4%

Net interest income, or the difference between interest collected and paid, increased 15 per cent to Rs 5,376 crore. The lender’s net interest margin was 4.26 percent, compared to 4.28 percent the previous year.

Sumant Kathpalia, Managing Director & Chief Executive Officer, IndusInd Bank said: “We are looking at growing our branches from the existing 2,800 to 3,500 in the next two years. Our operating expenses jumped in FY24 and we hired around 11,000 employees in FY24. Our total expense in IT is around 8-10 per cent of our total cost to income.”

Operating expenses for the quarter ended March 31, 2024 grew by 24 per cent to Rs 3,803 crores, compared to Rs 3,066 crore for the same quarter the previous year.

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ICICI Bank Q4 Net Profit Rises 17.4%

Private sector lender ICICI Bank on Saturday reported a 17.4 per cent year-on-year jump in its net profit to Rs 10,708 crore for the March 2024 quarter (Q4FY24). Its net interest income (NII) during January-March 2024 rose 8.1 per cent year-on-year to Rs 19,093 crore, compared with Rs 17,667 crore in the year-ago period.

ICICI Bank’s net NPA ratio declined to 0.42 per cent in the March 2024 quarter, from 0.44 per cent as on December 31, 2023, according to a BSE filing.

The board recommended a dividend of 10 per equity share of face value of 2 each, subject to requisite approvals. The dividend on equity shares, will be paid/despatched on or after the same is approved by the shareholders at the ensuing Annual General Meeting (AGM) of the bank.

Provisions (excluding provision for tax) were Rs 718 crore in Q4 FY24 compared to Rs 1,619 crore in Q4 FY23.

The net interest margin stood at 4.40 per cent in Q4-2024 compared to 4.43 per cent in Q3-2024 and 4.90 per cent in Q4 2023.

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Yes Bank Q4 Net profit jumps 123%

Private sector lender Yes Bank on April 27 reported a net profit of Rs 451 crore for the January-March quarter of financial year (FY) 2023-24, which marks a 123 percent jump as compared to Rs 202 crore clocked in the year-ago period.

The bank's gross non-performing asset (NPA) stood at 1.7 percent, down from 2.2 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 0.6 percent, improving from 0.80 percent on a year-on-year basis. Gross slippages for Q4FY24 stood at Rs 1,356 crore versus Rs 1,233 crore in Q3FY24.

The net interest income (NII) of the lender came in at Rs 2153 crore, increased marginally by 2 percent as compared to Rs 2105 crore reported in the corresponding quarter of the previous fiscal.

Net advances grew at 13.8 percent YoY and stood at Rs 2.27 lakh crore, aided by sustained growth momentum in SME and mid corporate advances and resumption of growth in corporate segment. Total deposits stood at Rs 2.6 lakh crore, up 22.5 percent. CASA ratio at 30.9 percent vs. 30.8 percent in Q4FY23.

The lender saw compression in net interest margin which dropped to 2.4 percent versus.2.8 percent in Q4FY23.

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RBI Curbs On Kotak Mahindra Bank: Check which services will affect

 

RBI on April 24 barred Kotak Mahindra Bank (KMB) from onboarding new customers through its online and mobile banking channels and issuing fresh credit cards, citing supervisory concerns over its technology platforms. The actions followed an RBI examination of the bank's IT systems over the last two years and the bank’s “continued failure” to address concerns, the central bank said.

The ban will not impact existing customers and Koak can continue to provide services to them, including its credit card customers, the RBI said.

The action will likely impact new customer acquisition of Kotak Mahindra Bank as a significant portion of new account openings happen through online and mobile banking channels. Also, the RBI action is bad news for KMB's credit card business as well. As per experts, the central bank's ban on issuing new credit cards could impact the bank’s co-branded credit card deals.

"These actions are necessitated based on significant concerns arising out of Reserve Bank’s IT Examination of the bank for the years 2022 and 2023 and the continued failure on part of the bank to address these concerns in a comprehensive and timely manner," RBI said.

According to the central bank, serious deficiencies and non-compliance were observed in the areas of IT inventory management, patch and change management, user access management, vendor risk management, data security and data leak prevention strategy, business continuity and disaster recovery rigour and drill, and so on.

Explaining the action, the RBI said for two consecutive years, the bank was assessed to be deficient in its IT Risk and Information Security Governance, contrary to requirements under regulatory guidelines.

What triggered the RBI action?

During subsequent assessments, Kotak Mahindra was found to be significantly non-compliant with the corrective action plans issued by the Reserve Bank for the years 2022 and 2023, as the compliances submitted by the bank were found to be either inadequate, incorrect or not sustained, the central bank said.

Back in 2020, the RBI had  announced a similar action against HDFC Bank when it asked the country's largest private sector lender to put all new digital launches on hold till the bank resolve  tech issues. HDFC Bank was barred from launching any new digital products or services and issuing new credit cards as a penalty for repeated instances of outages in its online platforms.

Later, in August 2021, the RBI partially revoked the ban on the bank allowing it to issue new credit cards. Later in March, 2022, the bank informed the exchanges that the RBI has lifted the restrictions that were placed on the fresh digital launches of HDFC Bank.

The RBI had cited similar technology-related concerns as in the case Kotak Mahindra Bank while taking action against HDFC Bank after repeated outages at the lender's data centre. The restrictions barred HDFC Bank from launching any of the activities planned under the Digital 2.0 programme as well as the sourcing of new credit cards.

The RBI had also asked the bank to fix accountability in the matter pertaining to the data centre outages, and examine reasons behind the lapses. Subsequently, an audit was carried out and the bank submitted a roadmap to the central bank.

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Axis Bank Q4 Results: Lender back in black, NII jumps 22% YoY

The country’s third largest private sector lender, Axis Bank, on Wednesday reported net profit of Rs 7,129.67 crore in the quarter ended March 31 as compared to a net loss of Rs 5,728.42 crore in the same period of the previous year, despite an increase in loan loss provision.

The numbers are not comparable as the consumer business of Citi India was merged with Axis in the fourth quarter of FY23.

Net interest income grew 11 per cent year-on-year (Y-o-Y) to Rs 13,089 crore while fee income grew by 23 per cent to Rs 5,637 crore. The trading income gain for the quarter stood at Rs 1,021 crore.

Net interest margin for the quarter was 4.06 per cent, up 5 bps sequentially.

Provision for the quarter was Rs 1,185.31 crore as compared to Rs 305.77 crore mainly due to rise in provision for non-performing assets which went up from Rs 270 crore in the Q4 of FY23 to Rs 832 crore. Fresh slippages during the quarter was Rs 3,471 crore. Provision coverage ratio was at 79 per cent.

“The bank has not utilised Covid provisions during the quarter and these are reclassified to other provisions,” Axis Bank said.

The bank’s reported Gross NPA and Net NPA levels were 1.43% and 0.31% respectively on 31 March as against 1.58% and 0.36% as on 31st December 2023.

The total deposits grew 13% Y-o-Y while the current and savings account deposits were 43 per cent of the total deposits.

Advances grew 14% Y-o-Y to Rs 9.65 trillion mainly due to 20 per cent growth in retail loans which are 60 per cent of the bank’s net advances.

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HDFC Bank Q4 results: Profit jumps 37%, NII up 24.5%

HDFC Bank on April 20 reported a net profit of Rs 16,511 crore for the January-March quarter of the financial year 2023-24, marking a 0.84 percent jump compared to Rs 16,373 crore clocked in the previous quarter. The net profit is almost in line the market estimates of Rs 16,576 crore.

The bank’s year-on-year financial results are not comparable due to the merger with the parent entity HDFC Ltd during the year.

The net interest income (NII) of Rs 29,007 crore jumped from Rs 28,470 crore reported in the previous quarter. The NII is slightly lower as against the market estimates of Rs 29,172 crore.

The bank's gross non-performing asset (NPA) stood at 1.24 percent, down from 1.26 percent in the last quarter. On the other hand, net NPA for the quarter stood at 0.33 percent compared to 0.31 percent.

The net revenue of the lender grew to Rs 47,240 crore including transaction gains of Rs 7340 crore from the stake sale in subsidiary HDFC Credila Financial Services during the quarter.

The board of directors recommended a dividend of Rs 19.5 per equity share of Rs 1 for the year ended March 31, 2024, the bank said in a press release. Provisions and contingencies for the quarter were Rs 13,500 crore which included floating provisions of Rs 10,900 crore, the bank said. For FY24, the total profit of the bank stood at Rs 64,060 crore.

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Police summons MDs of 4 Banks, 11 Bank Employees arrested

A number of bankers have been arrested in recent cyber fraud investigations due to allegations that they were involved in fraudulent operations. The managing directors of Yes Bank, ICICI Bank, RBL Bank, and Kotak Mahindra Bank are among the four private banks that the city police have written to, demonstrating how seriously they regard this issue. The letter's objective is to ask them to come in person the next week to provide an explanation for why no legal action should be taken against them.

Role of Bankers in Cyber Fraud Cases

When authorities discovered that the account holders implicated in illegal activities were unaware that they had opened such accounts, the role of bankers came under investigation. It was found that the bankers had helped cyber criminals open these accounts after more inquiry. The fact that the bankers charged a sizable commission in each instance suggests that they were aware that they were involved in illegal activity.

Victims of Fraudulent Investment and Task-based Schemes

Many people have been duped by schemes that promise large returns on investments or possibilities depending on tasks. In addition to apprehending the cyber criminals, the local police have shown initiative by making the bankers answerable for their involvement in these cyber fraud cases. As a result, the city police are the only law enforcement agency in the nation authorized to detain bankers in conjunction with other suspects in similar circumstances.

Read More - सबसे बड़ा बैंकिंग घोटाला: भारत देश में अब तक का सबसे बड़ा बैंक फ्रॉड, करोडो का बैंको को लगाया चुना

Exposing the Role of Bankers

During the investigation, it was discovered that the employees of Kotak Mahindra Bank’s MG Road branch were involved in fraudulent activities. They were subsequently arrested, and during the interrogation, they confessed to the involvement of several other bankers in similar fraudulent acts. Recognizing that bank accounts are a crucial component in cyber frauds, the police decided to investigate the criminal activities of bankers in such cases.

Violations of KYC Norms

In light of the recent arrests, the city police have written to the managing directors of Kotak Mahindra Bank, ICICI Bank, RBL Bank, and Yes Bank. The purpose of this letter is to request their personal appearance and an explanation as to why legal action should not be initiated against them for clear violations of the Reserve Bank of India’s (RBI) Know Your Customer (KYC) norms.

Bankers’ Methods and Tactics

During the ongoing investigations, the police have found that the bankers accused of aiding cyber criminals opened bank accounts using identification and address proofs collected from factory workers and laborers. They even gained access to the bank accounts of daily-wage workers by offering them money. Additionally, the police noticed the use of fake IDs, address proofs, and forged signatures to open bank accounts, further exposing the deceptive tactics used by these individuals.

Read More - Suspicious transactions detected in this bank,three staffs arrested

Bank Responsibilities and Accountability

The Deputy Commissioner of Police(Cyber Crime), Siddhant Jain, emphasized that bank managements have a responsibility to safeguard their clients’ money and protect it from cyber criminals. If bank employees are involved in criminal activities and aiding fraudsters, it is the duty of the bank managements to explain why action should not be taken against them. The police are determined to hold the responsible parties accountable for their actions in order to protect the public and maintain the integrity of the banking system.

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Top 10 Banks in India as per Market Cap

 

The banking sector plays a crucial role in the growth and development of any economy. In India, the banking sector has significantly evolved over the past decade, with a tech-savvy population and a booming economy. As of 2024, the top banks in India, based on market capitalization, are also among the top banks globally. HDFC Bank holds the position of the largest bank in India in terms of market capitalization. Let’s have a look at the Top 10 Banks in India as per Mcap.

Top 10 Banks in India as per Market Cap (as on 12.04.2024)

Rank	Rank	Market Cap (Rs Lakh Crore)
1	HDFC Bank	1,153,894.76
2	ICICI Bank	775,447.63
3	SBI	684,294.62
4	Kotak Mahindra	359,803.74
5	Axis Bank	330,873.03
6	Punjab National Bank	148,373.43
7	Bank of Baroda	138,514.94
8	Indian Overseas Bank	121,069.95
9	IndusInd Bank	120,639.59
10	Union Bank	113,855.23

Read More - Top 10 Largest Banks 2023

Read More - Best Banks in India 2023

Public Sector Banks Market Cap (as on 12.04.2024)

Bank Name	Market Cap (Rs. cr)
SBI	684,294.62
PNB	148,373.43
Bank of Baroda	138,514.94
IOB	121,069.95
Union Bank	113,855.23
Canara Bank	109,900.01
Indian Bank	70,917.65
UCO Bank	65,913.20
Bank of India	65,262.49
Central Bank	55,471.20
Bank of Mah	45,051.70
Punjab & Sind	41,080.16

Private Banks Market Cap (as on 12.04.2024)

Bank Name	Market Cap (Rs. cr)
HDFC Bank	1,153,894.76
ICICI Bank	775,447.63
Kotak Mahindra	359,803.74
Axis Bank	330,873.03
IndusInd Bank	120,639.59
IDBI Bank	93,384.61
Yes Bank	69,757.78
IDFC First Bank	59,634.81
AU Small Finance Bank	47,372.34
Federal Bank	37,985.11
Bandhan Bank	29,472.69
RBL Bank	15,647.74
Karur Vysya Bank	15,431.97
J&K Bank	15,157.78
City Union Bank	11,513.74
Equitas SFB	11,365.90
Ujjivan SFB	10,551.87
Karnataka Bank	8,774.83
Tamilnad Mercantile Bank	7,784.56
South Indian Bank	7,429.23
CSB Bank	6,671.40
Utkarsh SFB	5,827.12
Jana SFB	4,660.54
DCB Bank	3,860.45
ESAF SFB	3,142.73
Suryoday SFB	2,009.85
Capital SFB	1,614.55
Dhanlaxmi Bank	1,172.71

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ICICI Bank Q3 Results: PAT jumps 24% YoY, beats estimates

ICICI Bank announced its October-December quarter results for fiscal 2023-24 (Q3FY24) results, reporting a rise of 23.5 per cent in standalone net profit at ₹10, 272 crore, compared to ₹8,312 crore in the year-ago period.

India's second largest private sector lender's net interest income (NII) increased by 13.4 per cent to ₹18,678 crore in the December quarter from ₹16,465 crore in the corresponding period last year. 

The gross non-performing assets (NPA) ratio declined to 2.30 per cent at December 31, 2023 from 2.48 per cent at September 30, 2023. The net NPA ratio was 0.44 per cent at December 31, 2023 compared to 0.43 per cent at September 30, 2023 and 0.55 per cent at December 31, 2022.

The net additions to gross NPAs, excluding write-offs and sale, were ₹363 crore in Q3-2024 compared to ₹116 crore in Q2-2024. The gross NPA additions were ₹5,714 crore in Q3-2024 compared to ₹4,687 crore in Q2-2024. 

Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹5,351 crore in Q3-2024 compared to ₹4,571 crore in Q2-2024. The bank has written off gross NPAs amounting to ₹1,389 crore in Q3-2024. The provisioning coverage ratio on NPAs was 80.7 per cent at December 31, 2023.

The total period-end deposits increased by 18.7 per cent year-on-year and 2.9 per cent sequentially to ₹13,32,315 crore at December 31, 2023. Period-end term deposits increased by 31.2 per cent year-on-year and 4.9 per cent sequentially to ₹8,04,320 crore at December 31, 2023. Average current account deposits increased by 11.6 per cent year-on-year in Q3-2024. Average savings account deposits increased by 2.8 per cent year-on-year in Q3-2024.

The net domestic advances grew by 18.8 per cent year-on-year and 3.8 per cent sequentially at December 31, 2023. The retail loan portfolio grew by 21.4 per cent year-on-year and 4.5 per cent sequentially, and comprised 54.3 per cent of the total loan portfolio at December 31, 2023.

Including non-fund outstanding, the retail portfolio was 46.4 per cent of the total portfolio at December 31, 2023. The business banking portfolio grew by 31.9 per cent year-on-year and 6.5 per cent sequentially at December 31, 2023.

Provisions (excluding provision for tax) were ₹1,050 crore in Q3-2024 compared to ₹2,257 crore in the year-ago period.

In Q3-2024, provisions included ₹627 crore on investments in Alternate Investment Funds as per RBI circular dated December 19, 2023.

The non-interest income, excluding treasury, increased by 19.8 per cent year-on-year to ₹5,975 crore in Q3-2024 from ₹4,987 crore in Q3-2023

Fee income grew by 19.4 per cent year-on-year to ₹5,313 crore in Q3-2024 from ₹4,448 crore in Q3-2023. Fees from retail, rural, business banking and SME customers constituted about 79 per cent of total fees in Q3-2024

There was a treasury gain of ₹123 crore in Q3-2024 compared to ₹36 crore (US$ 4 million) in Q3-2023.

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IDBI Bank Q3 net profit jumps 57%

IDBI Bank on Saturday reported a 57 per cent growth in net profit to Rs 1,458 crore in the third quarter ended December 31, on lower provisioning and better interest income.

The LIC-controlled bank had a net profit of Rs 927 crore in the October-December quarter of 2022.

The bank's interest income improved during the third quarter of the current fiscal to Rs 6,541 crore, as against Rs 5,231 crore in the same period last fiscal.

The gross non-performing asset (NPA) ratio improved to 4.69 per cent as on December 31, 2023, as against 13.82 per cent as on December 31, 2022

Similarly, the net NPA also declined to 0.34 per cent, as compared to 1.08 per cent at the end of December 2022.

As a result provisioning and contingencies came down to Rs 320 crore in the December quarter, from Rs 784 crore in the same quarter of the last fiscal.

Provision Coverage Ratio (including Technical Write-Offs) stood at 99.17 per cent as on December 31, 2023.

During the quarter Capital Adequacy Ratio of the bank improved to 20.32 per cent, as compared to 20.14 per cent at the end of December 2022.

The bank has not raised capital during the December quarter and the earlier funds have been fully utilised, it said.

The government, which owns over 45 per cent stake in IDBI Bank, plans to sell its stake in the bank and the process could gather pace next financial year.

Meanwhile, life insurance behemoth LIC, which has a 49.24 per cent shareholding, is keen to hold strategic stake in the bank so that it can enjoy the benefit of bancassurance channel.

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Kotak Mahindra Bank Q3 results: Profit at Rs 3,005 crore

Private sector lender Kotak Mahindra Bank on January 20 reported a net profit of Rs 3,005 crore for the quarter ended December 31, 2023, growing by 7.6 percent on a year-on-year (YoY) basis but falling short of analyst expectations of a Rs 3,243 crore profit.

Additionally, to comply with the Reserve Bank of India's (RBI) latest measures on alternative investment funds (AIF), the bank made a provision of Rs 143 crore.

Kotak Mahindra Bank's net profit for the quarter grew to Rs 3,005 crore, 7.6 percent up from Rs 2,792 crore in the corresponding quarter last year.

The lender's net interest income (NII) was at Rs 6,554 crore, higher than market estimations of Rs 6,434 crore. Net interest margin (NIM) of the lender came in at 5.22 percent for the quarter.

Segment wise, the lender’s home loan portfolio grew 15 percent to Rs 1.02 lakh crore from Rs 89,112 crore in the corresponding quarter last year. The credit card portfolio jumped by 52 percent to Rs 13,882 crore from Rs 9,159 crore.

The bank’s asset quality improved during the October-December period with gross non-performing assets (NPAs) at 1.73 percent, down from 1.91 percent from the year-ago quarter. Net NPA came in at 0.34 percent against 0.48 percent.

According to Motilal Oswal Financial Services, asset quality was expected to improve to 1.63 percent and Net NPA at 0.34 percent but the reported numbers missed expectations.

Gross slippages for the quarter stood at Rs 1,177 crore, compared to Rs 748 crore last year.

The bank said that it has made a provision of Rs 143 crore on its AIF investments. “The bank made a Rs 143 crore provision (post-tax) on applicable alternate investment fund (AIF) investments pursuant to RBI’s circular dated December 19, 2023," the bank said in a press release.

The RBI on December 19, said that regulated entities, such as banks, non-bank lenders, and home financiers, cannot invest in alternative investment funds (AIFs) that have directly or indirectly invested in companies that have borrowed money from the lenders.

Advances of Kotak Mahindra Bank grew by 15.72 percent to Rs 3.59 lakh crore, compared to Rs 3.10 lakh crore last year. Whereas, deposits grew by 18.56 percent to Rs 4.08 lakh crore from Rs 3.44 lakh crore.

The current account and savings account (CASA) ratio of the bank stood at 47.7 percent. Average current deposits grew by 5 percent to Rs 59,337 crore compared to Rs 56,372 crore last year.

Unsecured retail advances (incl. Retail Micro Finance) as a percent of the net advances stood at 11.6 percent for the quarter, compared to 9.3 percent of total advances in the corresponding quarter last year.

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