KOTAK MAHINDRA BANK Q4 RESULTS 2024: NET PROFIT RISES AND ASSET QUALITY IMPROVES

Kotak Mahindra Bank reported its Q4FY24 numbers on Saturday, 4th April. On Friday, Kotak Mahindra Bank's share price closed at Rs 1,550.30 per share, down 1.61% on NSE. Let us look at Kotak Bank's result in detail.

About Kotak Mahindra Bank

Kotak Mahindra Bank is a leading private-sector bank, offering a wide range of financial products and services, including banking, insurance, and wealth management. Founded in 1985, it has grown to become one of the country's most prominent banking institutions, with a strong presence in various financial sectors.

Crucial parameters

• PE: 23.40
• 52-week high: Rs 2,063.00
• Market Cap: Rs 3,07,581.06 crore
• ROE: 16.85%

Share price movement

In the last six months, the bank's share price has given negative returns of 10.99%. In the last one year, the share price has fallen sharply with 19.49% negative returns for investors, against positive NIFTY50 returns. For the 5-year time frame, the share price has given a sub-par return of only 11%, lower than the benchmark and peers. 

How were Kotak Mahindra Bank's March quarter results?

Kotak Mahindra Bank Q4FY24 results details are as below:

Net Profit: The bank has reported a consolidated profit of Rs 4,133 crore, a 18% jump in net profits. The profits have increased from Rs 3,496 crore in the year-ago period. 

Net Interest Income (NII): Kotak Mahindra Bank reported an NII of Rs 6,909 crore for the fourth quarter of the current financial year. The NII increased by 13% from Rs 6,103 crore reported for the same period of the last financial year. The Net Interest Margins (NIM) reduced to 5.28% in Q4FY23 from 5.47% in Q3FY24.

Asset Quality: Kotak Mahindra Bank's Gross Net Performing Assets (GNPA) for the quarter ended March was 1.39%. It has decreased sharply from the 1.78% reported in the year-ago period and from Q3FY24's GNPA of 1.73%. Net NPA lowered from 0.37% a year ago period to 0.34%. Sequentially, the NNPA has remained the same. In absolute terms, GNPA and NNPA for the quarter ended March stood at Rs 5,275 crore and Rs 1,271 crore, respectively.

Advances and Deposits: The Deposits reported by the bank for the quarter ending March were at Rs 4.49 lakh crore, increased from Rs 3.63 lakh crore from the year-ago period and Rs 4.09 lakh crore in Q3FY24. Net Advances have increased YoY by 17.6% to Rs 3.76 lakh crore and 5.1% sequentially. CASA ratio stood at 45.5%, down from 52.8% in Q4FY23, and 47.7% in Q3FY24.

Unsecured retail advances, including microfinance portfolio, stood at 11.6% as a percentage of net advances compared with 9.3% a year earlier. Under customer assets, the retail microfinance portfolio saw maximum growth of 60% year-on-year to Rs 9,983 crore. It was followed by a growth of 44% to Rs 14,505 crore in credit cards. Personal, business, and consumer durables loans grew 27% to Rs 20,049 crore. The agriculture division saw the slowest growth of 1% to Rs 27,850 crore.

Dividend: The Board of the bank declared a dividend of Rs 2 per share for FY24, the bank informed the stock exchanges on May 4. It would be subject to shareholders's approval in the next annual general meeting.

Update from Subsidiaries

• Kotak Mahindra Prime: It reported an NII of Rs 493 crore, a jump of nearly 15% from the year-ago period. PAT reduced from Rs 224 crore in Q4FY23 to Rs 223 crore in Q4FY24. NNPA fell from 0.9% to 0.8% year on year.
• Kotak Mahindra Life Insurance: The profit after tax (PAT) was reduced to Rs 109 crore for the fourth quarter of the previous financial year. In the same quarter last year, the PAT reported was Rs 205 crore. Total premium increased from Rs 6,189 crore in Q4FY23 to Rs 7,478 crore in Q4FY24.
• Kotak Securities: Total Income from this business increased to Rs 1,214 crore in Q4FY23 from Rs 682 crore in Q4FY23. PAT increased to Rs 378 crore for the quarter ending March. Compared to last year (March quarter), the overall market share has increased from 10.1% to 11.4%.
• Kotak Mahindra AMC: Average AUM for the March quarter stood at Rs 3.84 lakh crore, an excellent double-digit growth over the same period last year. PAT decreased from Rs 192 crore to Rs 150 crore in Q4FY24.