Table of Content
Introduction
Kotak Mahindra Finance Limited (KMFL) became the first NBFC in the country to convert into a bank when it received the banking license from RBI in February 2003. Kotak Mahindra Finance, renamed Kotak Mahindra Bank, comprises four Strategic Business Units (SBUs): Consumer Banking, Corporate Banking, Commercial Banking, and Treasury. These units cater to the retail and corporate customers throughout the country. Furthermore, Kotak Mahindra Bank Limited is the third largest private sector bank in India by market capitalisation.
The private sector lender announced its financial results for Q2 FY 2023-24 over the weekend on October 21, registering a 24% YoY increase in its net profit. Here’s an overview of its performance during the period under review.
Additional Read: Q2 Results Dashboard
Key Financial Metrics
Performance Highlights (Standalone)
- Kotak Mahindra Bank’s Profit After Tax (PAT) for the second quarter of the fiscal year stood at ₹3,191 Cr, a 24% YoY rise from ₹2,581 Cr in Q2 of FY 2022-23.
- The Net Interest Income (NII) surged to ₹6,297 Cr from ₹5,099 Cr during the corresponding period last year, a growth of 23.5% YoY.
- The bank’s operating profit for the second quarter of FY 2023-24 stood at ₹4,610 Cr, an increase of 29% YoY from ₹3,568 Cr during Q2 FY 2022-23.
- The number of customers also increased from 366 lakhs (Q2 FY 2022-23) to 458 lakhs (Q2 FY 2023-24).
- The total income stood at ₹13,507.36 Cr as against ₹9,925.22 Cr during Q2 FY 2022-23.
Kotak Mahindra Bank Limited, the third-largest private sector bank in the country in terms of market cap, reported an increase of 24% YoY in its PAT during the quarter under review. However, sequentially, it fell 8% (QoQ). The bank’s total income from operations stood at ₹13,507.36 Cr, compared to ₹9,925.22 Cr reported for the same period last year.
The bank’s net interest margin (NIM) was reported at 5.22% for Q2 FY 2023-24, while the net interest income (NII) rose 23.5% YoY to ₹6,297 Cr. These results met the analysts’ estimates, with Kotak Mahindra Bank displaying a robust performance during the quarter under review.
In terms of its non-performing assets (NPA), the NPA ratio was down to 1.72% in Q2 FY 2023-24, compared to 1.77% at the end of Q1 FY2023-24 and 2.08% at the end of Q2 FY 2022-23. The percentage of net NPA to net Advances stood at 0.37%.
Customer Assets, which include advances and credit substitutes, rose 18% YoY to ₹3.80 lakh Cr as against ₹3.23 lakh Cr during Q2 FY 2022-23. The Advances during Q2 FY 2023-24 stood at ₹3.57 lakh Cr, clocking a 21% YoY increase from ₹2.96 lakh Cr in Q2 FY 2022-23.
Also Read: Kotak Mahindra Bank Share Price
Kotak Mahindra Bank Limited: H1 Standalone Financial Figures (YoY)
| Particulars | H1 FY 2022-23 | H1 FY 2023-24 |
| Interest Earned | ₹15,431.30 Cr | ₹21,692.83 Cr |
| Total Income | ₹18,379.74 Cr | ₹26,690.62 Cr |
| Total Expenditure | ₹12,028.97 Cr | ₹17,130.94 Cr |
| Operating Profit | ₹6,350.77 Cr | ₹9,559.68 Cr |
| Net Profit | ₹4,651.83 Cr | ₹6,643.27 Cr |
Kotak Mahindra Bank Limited: Standalone Financial Figures (QoQ)
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Interest Earned | ₹10,500.00 Cr | ₹11,192.83 Cr |
| Total Income | ₹13,183.26 Cr | ₹13,507.36 Cr |
| Total Expenditure | ₹8,233.69 Cr | ₹8,897.25 Cr |
| Operating Profit | ₹4,949.57 Cr | ₹4,610.11 Cr |
| Net Profit | ₹3,452.30 Cr | ₹3,190.97 Cr |
Key Analytical Ratios (QoQ)
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Capital Adequacy Ratio – Basel III | 21.12 | 20.03 |
| % of Gross NPA to GrossAdvances | 1.77 | 1.72 |
| % of Net NPA to Net Advances | 0.4 | 0.37 |
| Return on Average Assets (RoA) (Not Annualised) (%) | 0.70 | 0.62 |
| Debt-Equity Ratio | 0.23 | 0.25 |
| Total Debts to Total Assets (%) | 3.97 | 4.22 |
Stock Performance
Kotak Mahindra Bank Ltd. announced its quarterly results for the fiscal year on October 21st. The following Monday, the shares opened at ₹1,772 and, at 11:50 A.M., fell by 1.10% to ₹1,750 apiece on BSE.
About Kotak Mahindra Bank
A part of the Kotak Mahindra Group, which is one of the country’s leading financial services conglomerates, Kotak Mahindra Bank Ltd. (formerly Kotak Mahindra Finance Ltd.) received its banking license from RBI in 2003. It also became the first NBFC to convert into a bank in the country. The bank was also ranked 245th among the world’s top 500 banks in a study by Brand Finance Banking 500, which was published in February 2014. The brand valuation at the time was approximately US $481 million, and the entity was given a brand rating of AA+.
Sources:
https://www.kotak.com/content/dam/Kotak/investor-relation/Financial-Result/QuarterlyReport/FY-2024/q2/press-table/Q2FY24-Press-Table.pdf
https://www.kotak.com/content/dam/Kotak/investor-relation/Financial-Result/QuarterlyReport/FY-2024/q2/earnings-update/Q2FY24-Earnings-Update.pdf
https://www.kotak.com/content/dam/Kotak/investor-relation/Financial-Result/QuarterlyReport/FY-2024/q2/PressRelease/Q2FY24-Press-Release.pdf
