Kotak Mahindra Bank Q1 consolidated net profit up 51% to Rs 4,150 crore

Kotak Mahindra Bank on Saturday reported a consolidated net profit of Rs 4,150 crore for the April-June quarter of 2023-24 (Q1FY24) – a growth of 51 per cent over the same period last year. The bank posted a net profit of Rs 2,755 crore in the same period last year.
 

On a standalone basis, the private sector lender reported a net profit of Rs 3,452 crore in Q1FY24, up 67 per cent year-on-year (YoY) from Rs 2,071 crore in Q1FY22, aided by improvement in net interest margins (NIMs).

Its net interest income (NII), the difference between interest earned and interest expended, grew by 33 per cent on a year-on-year (YoY) basis to Rs 6,234 crore in Q1FY24 as against Rs 4,697 crore for Q1FY23. The Net Interest Margin (NIM) improved to 5.57 per cent for Q1FY24 from 4.92 per cent a year ago.

Dipak Gupta, joint managing director, Kotak Mahindra Bank, said margins will moderate as the cost of funds goes up. "It would be difficult to tell how interest rates will move in two-three quarters," he added.

Sequentially, KMB's margins moderated from 5.75 per cent in the quarter ended March 2023 (Q4Fy23).

Fees and services income expanded by 20 per cent YoY to Rs 1,827 crore in Q1FY24 from Rs 1,528 crore in Q1FY23, the bank said in a statement.

The bank's advances increased by over 19 per cent YoY to Rs 3.37 trillion as of June 31, 2023. Home loans and loan against properties (LAP) pool expanded by 18 per cent YoY to Rs 95,147 crore. The credit card book grew by 67 per cent YoY to Rs 11,360 crore at the end of June 2023. The corporate loans grew 9 per cent YoY to Rs 77,569 crore.  

The share of unsecured retail loans, including retail micro finance in advances, rose to 10.7 per cent in June 2023 from 7.9 per cent a year ago. Gupta said banks would like to increase the share of unsecured credit to mid-teens in a prudent manner.

The deposits grew by 20.04 per cent YoY to Rs 386,254 crore at the end of June 2023. However, the share of low-cost deposits – Current Account and Savings Account (CASA) declined sharply to 49.0 per cent at the end of June 2023 from 58.1 per cent a year ago.

The asset quality profile of the bank improved with gross non-performing assets (NPA) declining to 1.77 per cent in June 2023 from 2.24 per cent in June 2022. The net NPAs also declined to 0.40 per cent in June 2023 from 0.62 per cent a year ago. The provision Coverage Ratio (CAR) stood at 78.0 per cent at the end of June 2023.

There was an uptick in slippages of just over Rs 900 crore. Out of it, Rs 288 crore have already been upgraded in the quarter itself. The slippages were in the unsecured credit card portfolio and tractor segment, said Jaimin Bhatt, group president & group chief financial officer.

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