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Kotak Mahindra Bank Q4 profit beats estimates, rises 18% YoY to ₹4,133 crore; NII up 13%
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The board of Kotak Mahindra Bank also recommended a dividend of ₹2 per equity share of the face value of ₹5 each for the financial year 2024.
Leading private sector lender Kotak Mahindra Bank on Saturday (May 4) reported a 18.2% year-on-year (YoY) rise in its March quarter standalone net profit at ₹4,133.3 crore, compared to ₹3,495.6 crore in the same quarter a year ago. The profit figure was higher than CNBC-TV18’s poll of ₹3,376.9 crore.
The lender’s net interest income (NII) jumped 13.2% YoY to ₹6,909.4 crore during the quarter, higher by 3.6% than our poll of ₹6,670.2 crore. Kotak’s NII stood at ₹6,102.5 crore during the corresponding quarter of last year.
Kotak’s net interest margin (NIM) increased to 5.28%, compared to 5.22% on a sequential basis.
The bank’s gross non-performing assets (GNPA) declined to 1.39% in the March quarter as against 1.73% in the previous December quarter while net non-performing assets (NNPA) stood unchanged at 0.34%.
The lender’s advances jumped 20% YoY to ₹391,729 crore as of the fourth quarter while customer assets, which comprises advances and credit substitutes, rose 20% YoY to ₹423,324 crore.
The board of Kotak Mahindra Bank also recommended a dividend of ₹2 per equity share of the face value of ₹5 each for the financial year 2024.
The dividend will be subject to the approval of the members at the ensuing Annual General Meeting of the bank.
Recently, the Reserve Bank of India (RBI) had directed the lender to stop onboarding new customers through online and mobile banking channels and issuing fresh credit cards.
The bank, in a presentation today, said that it is looking to redeploy resources to minimise business impact of the RBI action. Kotak also said that it believes that the directions will not materially impact its overall business and it will step-up investments to fortify its IT systems.
On Friday, shares of Kotak Mahindra Bank settled 1.61% lower at ₹1,550.30 apiece on the NSE. The stock has declined nearly 20% in 2024 so far.
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