Kotak Mahindra Bank posted a consolidated net profit of Rs 1,789.24 crore in its financial results for the quarter ended March 31, 2018, missing analyst estimates. This amounts to a 27 per cent increase in consolidated net profit on a quarter-on-quarter (QoQ) basis for Indian private sector lender which reported the same at Rs 1,404.34 crore in the corresponding quarter the year before.
On the standalone front, Kotak Mahindra Bank saw its net profit for March quarter in the last fiscal rise to Rs 1,124 crore. The lender had posted net profit of Rs 976.48 crore in the Q4FY17. The standalone net profit for FY18 stood at Rs 4,084 crore, as opposed to Rs 3,411.50 crore reported at the end of FY17.
A Bloomberg panel had estimated that Kotak Mahindra Bank will register net profit of Rs 1,221 crore in the March quarter.
The consolidated net profit for Kotak Mahindra Bank during the financial year 2017-18 also increased 26 per cent to Rs 6200.97 crore from Rs 4,940.43 crore in the previous fiscal. The bank also saw its asset quality as its bad loans came down during the last fiscal. The gross non-performing assets (NPA) for the bank declined to Rs 4,071.04 crore from Rs 3,803.92 crore seen in FY17. The net NPA also dipped marginally in FY18 to Rs 1,768.60 crore from Rs 1,814.23 crore seen in the previous fiscal. As on March 31, 2018, Kotak Mahindra's gross NPA and net NPA stood at 1.95 per cent and 0.86 per cent respectively.
Kotak Mahindra Bank saw an increase in provisions and contingencies in March quarter at Rs 313.37 crore in the quarter under review. This amounts to an increase of 4.59 per cent on a QoQ basis increase against Rs 299.61 crore in the Q4FY17, and a sequential increase of 38 per cent from Rs 226.29 crore in the December quarter.
"The two lending subsidiaries, Kotak Mahindra Prime contributed Rs 590 crore for FY18 and Rs 160 crore for Q4FY18 and Kotak Mahindra Investments contributed Rs 245 crore for FY18 and Rs 95 crore for Q4FY18. All the above four subsidiaries have recorded the highest ever profits on an annual business," the bank said in a regulatory filing.
Net Interest Income (NII) for FY18 increased to Rs 9,532 crore from Rs 8,126 crore in FY17 up 17 per cent and for Q4FY18 up 19 per cent to Rs 2,580 crore from Rs 2,161 crore in Q4FY17, Kotak Mahindra Bank further added. The Net Interest Margin (NIM) for Q4FY18 is at 4.35 per cent as against 4.63 per cent in Q4FY17. As per Basel III, Capital Adequacy Ratio (CAR) of the bank 18.2 per cent and Tier I ratio is 17.6 per cent for the quarter under review.
The bank announced a dividend of Rs 0.70 to pass on the profit to the shareholders. "The Board of Directors at its meeting held today has recommended a dividend of Rs 0.70 per equity share having face value of Rs 5 for the year ended 31st March, 2018 (previous Year Rs 0.60 per equity share having face value of Rs 5). The dividend will be paid after the approval of shareholders at the Annual General Meeting," the bank's statement said.
The Board also re-designated Uday Kotak as the Managing Director and CEO with effect from May 1, 2018.