Kotak Mahindra Bank Q2 Results: PAT Jumps 24% To Rs 3,191 Cr, NII Up 23% YoY

In a meeting held today in Mumbai, the Board of Directors of Kotak Mahindra Bank approved the unaudited standalone and consolidated results for the quarter and half-year ended September 30, 2023.

On a standalone basis, the bank's net profit for Q2FY24 stood at Rs 3,191 crore, up 24% YoY from Rs 2,581 crore in Q2FY23. From Rs 5,099 crore in Q2FY23 to Rs 6,297 crore in Q2FY24, the Net Interest Income (NII) grew by 23% YoY. For Q2FY24, Net Interest Margin (NIM) was 5.22%. Operating profit for the bank for Q2FY24 was Rs 4,610 crore, up 29% YoY from Q2FY23's operating profit of 3,568 crore.

As of September 30, 2023, advances were up 21% YoY to Rs 3,57,012 crore from Rs 296,117 crore in the year-ago quarter. The value of customer assets, which include advances and credit substitutes, grew by 18% YoY to Rs 3,80,412 crore at the end of 2023 from Rs 3,23,418 crore at the end of the same quarter of 2022.

By percentage of net advances, the bank's unsecured retail advances were 11.0% as of September 30, 2023 compared to 8.7% in the year-ago quarter. The CASA ratio as of September 30, 2023, according to Kotak Mahindra Bank, was 48.3%.Average current deposits for the bank grew by 8% to Rs 58,351 crore for Q2FY24 from Rs 53,971 crore for Q2FY23. The average term deposit held by the bank grew by 47% from Rs 139,871 crore in Q2FY23 to Rs 205,632 crore in Q2FY24.

GNPA was 1.72% and NNPA was 0.37% as of September 30, 2023, compared to 2.08% and 0.55%, respectively, in the corresponding quarter of the previous fiscal. The provision coverage ratio stood at 79.1% while the Capital Adequacy Ratio of the bank, as of September 30, 2023 was 21.7% and CET I ratio of 20.6%.

The bank's PAT for Q2FY24 was Rs 4,461 crore on a consolidated basis, up 24% YoY from Rs 3,608 crore in Q2FY23. The Return on Assets (ROA) for Q2FY24 (annualised) was 2.68% compared to 2.61% for Q2FY23 at the consolidated level. Return on Equity (ROE) was 14.09% in Q2FY23 and 14.99% in Q2FY24 (annualised).

In order to acquire 100% of Sonata Finance Private Limited's issued and paid-up capital for a total sum of about Rs 537 crore, subject to all necessary approvals, including those of the RBI, the bank entered into share purchase agreements with Sonata Finance Private Limited's shareholders on Friday. Sonata is a Non-Banking Finance Company - Micro Finance Institution registered with the RBI.

"We now wish to update you that the RBI has, vide its letter dated October 19, 2023 received by the Bank on October 19, 2023, conveyed its approval to the Bank, for acquiring 100% of the issued and paid up capital in Sonata, as mentioned above, and to make Sonata a Business Correspondent subsidiary of the Bank. Upon completion of the aforesaid transaction (subsequent to receipt of other requisite approvals), Sonata will be a Wholly-Owned subsidiary of the Bank," said Kotak Mahindra Bank in a stock exchange filing.