Equity

Corporate Results

Kotak Mahindra Bank
(22-Oct-2019, 21:11 Hours IST)  
Kotak Mahindra Bank (KMB), on a standalone basis, reported robust 51% growth in Net Profit to Rs 1724.48 crore in the quarter ended September 2019 (Q2FY2020) over the corresponding quarter of last year. The bank has exhibited healthy improvement in asset quality, while further improved its net interest margins (NIMs) in Q2FY2020. NIMs of the bank have improved to 4.61% in Q2FY2020 compared with 4.49% in the previous quarter and 4.19% in the corresponding quarter last year. The cost-to-income rate has further improved to 45.16% in Q2FY2020 from 46.43% in the previous quarter and 46.21% in the corresponding quarter last year.

However, the bank exhibited moderation in loan growth to 15% at end September 2019 from 18% end June 2019. The credit cost (NPA provisions as an annualized percentage of loans) increased to 0.75% in Q2FY2020 from 0.48% in Q2FY2019. The business growth of the bank also eased to 14% at end September 2019.

On consolidated front, the bank has reported 38% growth in the Net Profit to Rs 2407.25 crore for the quarter ended September 2019, up from Rs 1747.37 crore in the quarter ended September 2018. NII increased 24% to Rs 4364.43 crore, while other income moved up 16% to Rs 4124.24 crore. The operating profit improved 17% to Rs 3417.81 crore in the quarter ended September 2019. Provisions and contingencies have moved up 32% to Rs 473.10 crore, while the effective tax rate was lower at 18.53% in Q2FY2020, compared with 32.8% in Q2FY2019.

Asset quality marginally weakens: The bank has witnessed marginal deterioration in the asset quality on consolidated as well as standalone basis, in the quarter ended September 2019.

  • On standalone basis, GNPA ratio has increased to 2.32% and NNPA ratio to 0.85% at end September 2019.
  • The SMA-2 category loans of the bank also moved up to Rs 431 crore at end September 2019 from Rs 332 crore a quarter ago and Rs 165 crore a year ago.
  • Capital Adequacy ratio under Basel III stood at 18.20% with the Tier I of 17.60% at end September 2019.
Standalone Asset Quality Indicators: Kotak Mahindra Bank
Sep-19Jun-19Mar-19Dec-18Sep-18Variation
QoQYTDYoY
Gross NPA (Rs Crore)5033.554613.524467.944128.684033.0791325
Net NPA (Rs Crore)1811.401524.381544.371397.271500.76191721
% Gross NPA2.322.192.142.072.15131817
% Net NPA0.850.730.750.710.8112104
% PCR64.0067.0065.4066.2062.80-300-140120
% CRAR - Basel III18.2017.8017.4517.0417.044075116
% CRAR - Tier I - Basel III17.6017.3016.9016.4016.403070120
Variation in basis points for figures given in percentages and in % for figures in Rs crore

 

Consolidated Asset Quality Indicators: Kotak Mahindra Bank
Sep-19Jun-19Mar-19Dec-18Sep-18Variation
QoQYTDYoY
Gross NPA (Rs Crore)5475.485020.644789.234458.104302.1791427
Net NPA (Rs Crore)2031.591732.831695.821554.191617.66172026
% Gross NPA2.172.021.941.891.91152326
% Net NPA0.820.710.700.670.7311129
% CRAR - Basel III19.1018.4017.9018.7018.707012040
% CRAR - Tier I - Basel III18.7017.9017.4018.3018.208013050
Variation in basis points for figures given in percentages and in % for figures in Rs crore

Business Highlights:

Standalone Business Highlights

The business level of the bank increased 14% yoy to Rs 446370 crore at end September 2019. The deposits moved up 13% to Rs 233071 crore, while advances increased 15% to Rs 213299 crore at end September 2019. The credit-deposit ratio increased to 91.52% at end September 2019 from 89.31% a quarter ago.

Home loans & LAP loans increased 23%, while small business and personal loans also increased 20% at end September 2019 over September 2018. The commercial vehicle & construction equipment (CV&CE) loan increased 15% and agriculture loans 21%, while corporate and business banking loan rose 7% end September 2019 over September 2018.

The CASA deposits ratio zoomed to 53.59% at end September 2019 from 50.71% a quarter ago and 50.24% a year ago. The cost of saving account deposits declined to 5.37% at end September 2019.

The bank has added 9 branches and 35 ATMs in the quarter ended September 2019. The branch and ATMs network of the bank stood at 1512 branches and 2429 ATMs at end September 2019.

Book Value per share of the bank stood at Rs 240.4 per share at end September 2019. Adjusted book value (net of NNPA) stood at Rs 230.9 per share at end September 2019.

Consolidated Business Highlights

Total assets of the bank increased 10% to Rs 400342 crore at end September 2019. Consolidated advances increased 12% to Rs 248740 crore at end September 2019.

The NIM improved to 4.56% in Q2FY2020 from 4.44% in the previous quarter and 4.09% in the corresponding quarter last year.

Book Value per share stood at Rs 327.6 per share at end September 2019, while adjusted book value (net of NNPA) stood at Rs 316.9 per share at end September 2019.

Consolidated Quarterly Performance:

On the consolidated front, the bank has reported 38% increase in the net profit at Rs 2407.25 crore, with the NII growth of 24% to Rs 4364.43 crore in the quarter ended September 2019. Non-interest income increased 16% to Rs 4124.24 crore and net total income moved up 20% to Rs 8488.67 crore in the quarter ended September 2019. The expense ratio was higher at 59.7%, while the tax rate was lower at 18.5% in the quarter ended September 2019.

Kotak Prime has reported 4% yoy improvement in the net total income at Rs 369 crore for Q2FY2020, while net profits rose 10% to Rs 172 crore. Total customer asset fell 4% yoy to Rs 27298 crore at end September 2019. Car advances constituting 69.8% of the total customer assets declined 8% to Rs 19041 crore. Asset quality has deteriorated slightly with %NNPA moderating to 0.56% at end September 2019 from 0.40% at end September 2018.

Kotak Mahindra Life Insurance has reported 27% increase in the gross premium collection to Rs 2190 crore in Q2FY2020. PAT increased 13% to Rs 144 crore in Q2FY2020. Solvency ratio eased to 3.06% in Q2FY2020 against 3.10% in Q2FY2019.

Kotak Securities has reported PAT at Rs 149 crore in Q2FY2020, exhibiting 33% surge from Rs 112 crore in Q2FY2019. Total income was flat at Rs 407 crore. Market share was steady on sequential basis at 1.7% at end September 2019 from 1.7% a quarter ago, while declined from 2.5% a year ago.

Kotak Mahindra Capital has reported a net profit of Rs 1 crore, against Rs 14 crore in the corresponding quarter last year. Total income of the company declined 44% to Rs 24 crore. AUM increased 21% to Rs 242025 crore at end September 2019 over September 2018.

Kotak Mahindra AMC and Trustee Co reported 24% surge in Average AUM at Rs 168658 crore in the quarter ended September 2019. The net profit of the company jumped 63% to Rs 85 crore in Q2FY2020.

Half Yearly Standalone Financial Performance:

For the half year ended September 2019 (H1FY2020), the bank posted 42% jump in the net profit to Rs 3084.68 crore. The net interest income increased 24% to Rs 6510.48 crore, while the non-interest income improved 6% to Rs 2541.29 crore in H1FY2020. Expense ratio improved to 45.8% in H1FY2020 compared to 46.0% in H1FY2019. The provision and contingencies declined 12% to Rs 724.69 crore H1FY2020. The profit before tax jumped 27% to Rs 4182.79 crore in H1FY2020. The effective tax rate dipped to 26.3% in H1FY2020 compared to 34.4% in H1FY2019. Net profit surged 42% to Rs 3084.68 crore in H1FY2020.

Half Yearly Consolidated Financial Performance:

For the half year ended September 2019 (H1FY2020), the bank posted 31% surge in the net profit to Rs 4339.46 crore. The net interest income improved 23% to Rs 8498.66 crore, while non-interest income jumped 21% to Rs 7964.50 crore in H1FY2020. Expense ratio was higher at 59.4% in H1FY2020 compared to 57.5% in H1FY2019. The provision and contingencies declined 4% to Rs 823.32 crore in H1FY2020. The profit before tax jumped 20% to Rs 5857.87 crore in H1FY2020. The effective tax rate was lower at 26.2% in H1FY2020 compared to 33.0% in H1FY2019, while the net profit increased 31% to Rs 4339.46 crore in H1FY2020.

Kotak Mahindra Bank: Standalone Financial Results

 

Particulars1909 (3)1809 (3)Var %1909 (6)1809 (6)Var %1903 (12)1803 (12)Var %
Interest Earned6761.605798.111713389.3311261.621923943.2119748.4921
Interest Expended3412.013121.8096878.856018.601412684.2510216.8124
Net Interest Income3349.592676.31256510.485243.022411258.969531.6818
Other Income1224.411218.0612541.292398.8464604.034052.2114
Net Total Income4574.003894.37179051.777641.861815862.9913583.8917
Operating Expenses2065.441799.40154144.293514.36187514.816425.7217
Operating Profits2508.562094.97204907.484127.50198348.187158.1717
Provisions & Contingencies407.93353.8015724.69823.43-12962.39939.952
Profit Before Tax2100.631741.17214182.793304.07277385.796218.2219
Provision for Tax376.15599.52-371098.111137.48-32520.462133.9218
PAT1724.481141.65513084.682166.59424865.334084.3019
EPS*(Rs)36.123.932.322.725.521.4
* Annualized on current equity of Rs 955.01 crore. Face Value: Rs 5 , Figures in Rs crore,
Source: Capitaline Corporate Database

Kotak Mahindra Bank: Consolidated Financial Results

 

Particulars1909 (3)1809 (3)Var %1909 (6)1809 (6)Var %1903 (12)1803 (12)Var %
Interest Earned8418.757285.461616708.0514160.781829934.7625131.0819
Interest Expended4054.323772.7678209.397271.411315186.6112466.8522
Net Interest Income4364.433512.70248498.666889.372314748.1512664.2316
Other Income4124.243543.62167964.506571.862115968.6013592.5917
Net Total Income8488.677056.322016463.1613461.232230716.7526256.8217
Operating Expenses5070.864146.70229781.977736.712619095.6716073.8519
Operating Profits3417.812909.62176681.195724.521711621.0810182.9714
Provisions & Contingencies473.10359.7132823.32858.69-41045.361024.742
Profit Before Tax2944.712549.91155857.874865.832010575.729158.2315
Provision for Tax545.63835.79-351531.941607.14-53456.023011.0915
PAT Before Minority Interest2399.081714.12404325.933258.69337119.706147.1416
Share of minority interest 0.000.00-0.000.00-0.0056.67-
Share in profits of associates 8.1733.25-7513.5363.16-7984.43110.50-24
PAT2407.251747.37384339.463321.85317204.136200.9716
EPS*(Rs)50.436.645.434.837.732.5
* Annualized on current equity of Rs 955.01 crore. Face Value: Rs 5 , Figures in Rs crore,
Source: Capitaline Corporate Database

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