Earnings Review
Kotak Bk Oct-Dec PAT up nearly 10% YoY, misses Street view
This story was originally published at 16:03 IST on 18 January 2025
Register to read our real-time news.Informist, Saturday, Jan. 18, 2025
Please click here to read all liners published on this story
--Kotak Mahindra Bank Oct-Dec net profit INR 33.05 bln
--Analysts saw Kotak Mahindra Bank Oct-Dec net profit INR 33.44 bln
--Kotak Mahindra Bk Oct-Dec net profit INR 33.05 bln vs INR 30.05 bln yr ago
--Kotak Bank Oct-Dec total income INR 160.50 bln vs INR 140.96 bln year ago
--Kotak Mahindra Bank gross NPA ratio 1.51% as on Dec 31 vs 1.48% qtr ago
--Kotak Bank Oct-Dec provisions INR 7.94 bln vs INR 5.79 bln year ago
--Kotak Bank Apr-Dec net profit INR 128.98 bln vs INR 96.48 bln year ago
--Kotak Bank Apr-Dec total income INR 476.26 bln vs INR 407.87 bln year ago
--Kotak Bank standalone gross NPA ratio 1.50% as on Dec 31 vs 1.49% qtr ago
--Kotak Mahindra Bank: Basel-III capital adequacy ratio 22.79% as on Dec 31
--Kotak Mahindra Bank net NPA ratio 0.41% as on Dec 31 vs 0.43% qtr ago
--Kotak Bk Oct-Dec net interest income INR 71.96 bln vs INR 65.54 bln yr ago
--Kotak Mahindra Bank Oct-Dec NIM 4.93% vs 4.91% qtr ago, 5.22% year ago
--Kotak Bank: Unsecured retail advances 10.5% of net advances as on Dec 31
--Kotak Bank: CASA ratio at 42.3% as on Dec 31 vs 43.6% as on Sept 30
--Kotak Bank: Credit-to-deposit ratio at 87.4% as on Dec 31
--Kotak Bank: Avg total deposits INR 4.59 tln as on Dec 31, up 15% YoY
--Kotak Bank Oct-Dec cost of funds 5.06% vs 5.15% in Jul-Sept
--Kotak Bank: Net advances INR 4.14 tln as on Dec 31, up 15% YoY
--Kotak Bank Oct-Dec fresh slippages INR 16.57 bln vs INR 11.77 bln year ago
--Kotak Bk Oct-Dec recoveries, upgrades INR 7.62 bln vs INR 8.30 bln yr ago
--Kotak Bk Oct-Dec loan write-offs INR 6.62 bln vs INR 1.32 bln year ago
--Kotak Bank: Provision coverage ratio 73% as on Dec 31
By Kshipra Petkar
MUMBAI – Kotak Mahindra Bank reported a net profit of INR 33.05 billion, up nearly 10% on year, for the quarter ended December. Analysts had pegged the bottom line for the bank at INR 33.44 billion. Sequentially, the net profit of the bank fell by 1.16%. The weaker-than-expected results for the bank were due to a rise in provisions. For the nine months ended December, the net profit for the bank was INR 128.98 billion as compared to INR 96.48 billion a year ago.
The bank reported provisions of INR 7.9 billion for the reporting quarter, higher than INR 6.6 billion a quarter ago. The provisions were up 37.12% on year. The reporting quarter included provisions for alternative fund investments worth INR 1.90 billion. It also included the provision on investments of INR 650 million on security receipts classified as non-performing investments. The provision coverage ratio of the bank stood at 73% as of Dec. 31.
The gross non-performing assets were up 3.9% on quarter to INR 62.66 billion and the net non-performing assets were down 2.5% on quarter to INR 16.81 billion in the reporting quarter. The gross NPA ratio stood at 1.50% as on Dec. 31 and the net NPA ratio stood at 0.41%. The annualised credit cost for the bank increased to 0.68% in Oct-Dec from 0.65% a quarter ago and 0.38% reported a year ago.
The bank saw fresh slippages of INR 16.57 billion in the reporting quarter, higher than INR 11.77 billion reported a year ago. However, the fresh slippages fell over 11.6% sequentially. The bank's recoveries and upgradations improved on quarter to INR 7.62 billion from INR 6.81 billion a quarter ago. Fresh slippages worth INR 2.10 billion were upgraded within the same quarter. The bank wrote off loans worth INR 6.62 billion in the reporting quarter.
The total income for the bank in Oct-Dec was INR 160.50 billion as compared to INR 140.96 billion a year ago. For Apr-Dec, the total income was INR 476.26 billion against INR 407.87 billion reported a year ago.
The net interest income of the bank rose 10% on year to INR 71.96 billion for the reporting quarter. Sequentially, the net interest income was up 2.5%. The net interest margins for the reporting quarter moderated to 4.93% from 5.22% a year ago. In Jul-Sept, the net interest margins were 4.91%. The bank's Basel-III capital adequacy ratio stood at 22.79% as of Dec. 31.
The bank's loans and deposits also grew at the same pace in the reporting quarter. The average deposits of the bank stood at INR 4.59 trillion as of Dec. 31, up 15% on year and the net advances grew 15% on year to INR 4.14 trillion. The credit-to-deposit ratio of the bank stood at 87.4%, lower than 88.0% reported a year ago.
The total deposits of the bank stood at INR 4.73 trillion as of Dec. 31, out of which the low-cost current, savings account deposits stood at INR 2.0 trillion. The CASA ratio for the bank stood at 42.3% as of Dec. 31. The cost of funds increased to 5.06% in Oct-Dec from 4.92% reported a year ago.
Within advances, consumer loans were up 17% on year at INR 1.99 trillion, commercial loan book rose 10% on year to INR 935.45 billion and corporate book increased 15% on year to INR 966.49 billion as of Dec. 31. Retail micro-credit book fell by 3% on year and 16% on quarter to INR 8.2 billion. As per the bank's investor presentation, unsecured retail advances as a share of net advances were 10.5% as of Dec. 31, lower than 11.3% quarter ago.
On the Reserve Bank of India's action on the bank to cease and desist from onboarding new customers through its online and mobile banking channels and issuing fresh credit cards, the bank said that it had made substantial progress on that front and it was having constant interactions with the regulator.
As of Dec. 31, the bank had 2,068 branches. On the National Stock Exchange, shares of Kotak Mahindra Bank closed 2.6% lower at INR 1,758.60 on Friday. End
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
