Kotak Mahindra Bank Q3 profit jumps 15% on-year to Rs 2,131 crore

Kotak Mahindra Bank on Friday posted a 14.94% year-on-year (YoY) jump in its standalone net profit at Rs 2,131 crore as against Rs 1,854 crore in the same duration last fiscal year, the private sector lender said in a regulatory filing.

The bank's consolidated profit after tax (PAT) was up 31% from Rs 2,602 crore posted in the corresponding quarter last year. Net Interest Income (NII) for Q3FY22 increased to Rs 4,334 crore, from Rs 3,876 crore in Q3FY21, up 12%.

Net Interest Margin (NIM) for Q3FY22 was at 4.62%. Net Total Income for Q3FY22 was Rs 5,698 crore, up 10% from Rs 5,166 crore in Q3FY21. Other Income of Q3FY22 includes MTM gain/(loss) on investments of Rs (484) cr (Q3FY21: Rs 5 crore).

Operating profit for Q3FY22 was Rs 2,701 crore (Q3FY21: Rs 2,908 crore). The higher operating expenditure is driven by the bank's push for growth.

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Net customer additions in Q3FY22 stood at 2.1 million against that of 0.8 million in Q3FY21. The bank's customers as on December 31, 2022 were 30.7 million (25 million as at December 31, 2021).

"Customer Assets, which includes Advances and Credit substitutes, increased by 20% to Rs 274,569 crore as at December 31, 2021 from Rs 228,791 crore as at December 31, 2020 (Rs 256,335 crore as at September 30, 2021)," the private lender stated in the filing.

Advances increased by 18% to Rs 252,935 crore as at December 31, 2021 from Rs 214,085 crore as at December 31, 2020 (Rs 234,947 crore as at September 30, 2021).

CASA ratio as at December 31, 2021 stood at 59.9% compared to 58.9% as at December 31, 2020.

"Average Current deposits grew to Rs 49,417 crore for 9MFY22 compared to Rs 37,533 crore for 9MFY21. Average Savings deposits stood at Rs 119,645 crore for 9MFY22 (9MFY21: Rs 107,363 crore). Average TD Sweep up from Rs 19,568 crore for 9MFY21 to Rs 23,429 crore for 9MFY22," the bank noted.

As on December 31, 2021, COVID related provisions stood at Rs 1,000 crore. In accordance with COVID and MSME Resolution Frameworks announced by RBI, the bank has standard restructured fund-based outstanding of Rs 1,364 core (0.54% of Advances) as at December 31, 2021.

GNPA was 2.71% & NNPA was 0.79% as at December 31, 2021. Credit cost on advances for Q3FY22 was 35 bps (annualised) (excluding reversal of COVID provision) (63 bps for Q2FY22).

Total provisions (including specific, standard, COVID-19 related etc.) held as on December 31, 2021 stood at Rs 7,269 crore. Capital adequacy ratio of the bank, including unaudited profits, as per Basel III as at December 31, 2021 was 23.3% and Tier I ratio was 22.4%.

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Kotak Mahindra Q3 results: Consolidated PAT up 31% YoY

The private sector lender posted a consolidated profit after tax (PAT) of Rs 3,403 crore in the quarter ended December (Q3FY22), up 31% from Rs 2,602 crore posted in the same duration last fiscal year.

The net contribution of non-bank entities was 37% of the consolidated PAT reported in Q3FY22.

At the consolidated level, the Return on Assets (ROA) (annualised) was 2.60% for Q3FY22 (2.21% for Q3FY21) and the Return on Equity (ROE) (annualised) was 14.8% for Q3FY22 (12.8% for Q3FY21), Kotak Mahindra added in its filing.

Consolidated Capital adequacy ratio, including unaudited profits, as per Basel III as at December 31, 2021 was 24.5% and Tier I ratio was 23.7%.

Consolidated Capital and Reserves & Surplus as at December 31, 2021 was Rs 93,141 crore (Rs 82,116 crore as at December 31, 2020). The Book Value per share was Rs 467.

AUM (Policyholders') of Kotak Mahindra Life Insurance as on December 31, 2021 grew 23.8% YoY to Rs 49,221 crore. Consolidated Customer Assets grew by 21% from Rs 255,768 crore as at December 31, 2020 to Rs 309,042 crore as at December 31, 2021.

Total assets managed / advised by the Group as at December 31, 2021 were Rs 386,465 crore up 23% over Rs 314,833 crore as at December 31, 2020.

"The Relationship Value of the customers of Wealth, Priority Banking and Investment Advisory was ~ Rs 649,000 crore as at December 31, 2021 up 73% from ~ Rs 375,000 crore as at December 31, 2020," the bank further stated in its filing.