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Informist, Saturday, May. 3, 2025

 

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--Kotak Mahindra Bank Jan-Mar net profit INR 35.52 bln 
--Analysts saw Kotak Mahindra Bank Jan-Mar net profit at INR 35.66 bln 
--Jan-Mar net profit INR 35.52 bln vs INR 41.33 bln year ago 
--Jan-Mar total income INR 167.12 bln vs INR 152.85 bln year ago 
--Gross NPA ratio 1.42% as on Mar 31 vs 1.50% quarter ago 
--Net NPA ratio 0.31% as on Mar 31 vs 0.41% quarter ago 
--Jan-Mar provisions INR 9.09 bln vs INR 2.64 bln year ago 
--Basel-III capital adequacy ratio 22.25% as on Mar 31 
--FY25 net profit INR 164.50 bln vs INR 137.82 bln year ago 
--FY25 total income INR 643.38 bln vs INR 560.72 bln year ago 
--FY25 provisions INR 29.42 bln vs INR 15.74 bln year ago
--Kotak Mahindra Bank to pay INR 2.50 per share dividend 
--Kotak Bank provision coverage ratio at 78% as on Mar 31 
--Unsecured retail advances 10.5% of net advances as on Mar 31 
--Avg total deposits INR 4.68 tln as on Mar 31, up 15% YoY 
--CASA ratio at 43% as on Mar 31 
--Jan-Mar net interest income INR 72.84 bln vs INR 69.09 bln year ago 
--Net advances INR 4.269 tln as on Mar 31 vs INR 4.138 tln Dec 31 
--Jan-Mar fresh slippages INR 14.88 bln vs INR 13.05 bln year ago 
--Jan-Mar recoveries, upgrades INR 7.47 bln vs INR 7.72 bln year ago 
--Jan-Mar loan write-offs INR 8.73 bln vs INR 15.60 bln year ago 
--Jan-Mar cost of funds 5.09% vs 4.98% year ago

 

By Priyasmita Dutta

 

NEW DELHI – India's fourth-largest private lender – Kotak Mahindra Bank Ltd.– reported over 14% on-year decline in net profit for the March quarter as provisions jumped over three-fold compared to the corresponding quarter a year ago. The net profit for the quarter under review was INR 35.52 billion, up 7.5% sequentially, and marginally lower than analysts' expectation of INR 35.66 billion. Provisions during Jan-Mar was INR 9.09 billion as against INR 2.64 billion a year ago. Sequentially, the provisioning was up nearly 15%. 

 

Within provisioning, INR 8.06 billion was set aside for advances and credit, nearly double from the year-ago figure, and INR 1.03 billion was for alternative investment fund and other investments, which had seen a writeback of INR 1.75 billion in the year-ago period. 

 

Fresh slippages during the March quarter were up 14% on year at INR 14.88 billion, while upgradations and recoveries went down 3.2% at INR 7.47 billion. Fresh slippages worth INR 1.35 billion were upgraded within the same quarter. The provision coverage ratio of the bank was 78% as of March-end, compared to 73% a quarter ago and 76% a year ago. The bank wrote-off loans amounting to INR 8.73 billion in Jan-Mar, nearly half of the INR 15.60 billion written off in the corresponding period a year ago. 

 

In the March quarter, the gross non-performing asset ratio improved sequentially to 1.42% from 1.50% at the end of December but worsened from 1.39% a year ago. Net non-performing asset ratio, on the other hand, improved to 0.31% from 0.41% at end of December and 0.34% from the year-ago quarter. The annualised credit cost for the bank decreased to 0.64% in Jan-Mar from 0.68% a quarter ago, but went up from 0.42% reported a year ago.

 

For 2024-25 (Jan-Mar), the bank's net profit rose over 19% on year to INR 164.50 billion, with total income going up nearly 15% at INR 643.38 billion. On Friday, shares of the bank closed nearly flat at INR 2,185 on the National Stock Exchange. On Saturday, the board of Kotak Mahindra Bank recommended a dividend of INR 2.50 per share for FY25. 

 

The total income of the bank in the latest quarter was INR 167.12 billion, 9.3% higher on year and 4.1% higher sequentially. Within income, the bank's interest income went up 10% on year at INR 135.30 billion. The net interest income of the bank rose only 5% on year to INR 72.84 billion in the reporting quarter.

 

The net interest margins for Jan-Mar moderated to 4.97% from 5.28% a year ago, but rose from 4.93% in the December quarter. The bank's Basel-III capital adequacy ratio was 22.25% at the end of March, compared to 20.55% at end of March 2024. 

 

During the March quarter, the lender's growth in advances outpaced its growth in deposits. The bank's advances grew nearly 14% on year to INR 4.27 trillion as of end of March, while deposits grew over 11% on year to INR 4.99 trillion. The credit-to-deposit ratio of the bank was 85.5% at the end of March, higher than 83.8% reported a year ago, but lower than 87.4% at end of December.

 

Within deposits, current account, savings account deposits were INR 2.14 trillion as of Mar. 31. The current account, savings account ratio for Kotak was 43% at the end of March, as against 42.3% as of December end and 45.5% as of the end of March 2024. The cost of funds increased to 5.09% in Jan-Mar from 4.98% a year ago. 

 

Within advances, consumer loans were up 17% on year at INR 2.08 trillion, the commercial loan book rose 6% on year to INR 955.79 billion and the corporate book increased 6% on year to INR 927.79 billion. Retail micro-credit book fell 33% on year and 19% on quarter to INR 6.70 billion. As per the bank's investor presentation, unsecured retail advances as a share of net advances were 10.5% as of March end, same as the quarter-ago figure, but lower than 11.8% as of March 2024.  End

 

Edited by Tanima Banerjee

 

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