InvestorQ : How did you see the quarterly results of Kotak Mahindra Bank for the Dec-21 quarter?
ishika Banerjee made post

How did you see the quarterly results of Kotak Mahindra Bank for the Dec-21 quarter?

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4 months ago
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Kotak Bank had reported a strong quarter helped by improvement in provisioning and a rise in net interest income on a yoy basis. Top line was lower due to lower gains on investments and on account of insurance revaluation. There were also provision gains in the form of a write back of COVID provisions. Here is a summary of Kotak Bank results.

Kotak Mahindra Bank

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income

₹ 14,176

₹ 14,671

-3.37%

₹ 15,342

-7.60%

Operating Profit

₹ 4,293

₹ 3,965

8.26%

₹ 4,365

-1.66%

Net Profit

₹ 3,403

₹ 2,602

30.79%

₹ 2,989

13.85%

Diluted EPS

₹ 17.15

₹ 13.14

₹ 15.06

Operating Margins

30.28%

27.03%

28.45%

Net Margins

24.00%

17.73%

19.48%

Gross NPA Ratio

2.75%

2.25%

3.16%

Net NPA Ratio

0.87%

0.53%

1.09%

Return on Assets (Not Ann)

0.65%

0.56%

0.60%

Capital Adequacy

21.29%

21.54%

21.76%

Kotak Bank reported -3.37% lower revenues in the Dec-21 quarter at Rs.14,176 crore. It reported higher revenues across key verticals like retail banking, corporate banking, stock broking and asset management. The investment banking business was also robust in the midst of a massive sequence of IPOs lined up to hit the primary markets. Treasury gains were lower due to higher bond yields which had an impact on debt market returns.

For Dec-21 quarter, operating profits were higher by 8.3% at Rs.4,293 crore. This was largely driven by Net interest income or NII growing by 12% on a yoy basis in the quarter to a level of Rs.4,334 crore. The Net interest margins or NIMs remained extremely robust at around 4.62%. Kotak enjoys among the best level of operating NIMs in the private banking segment. The CASA (current and savings accounts) ratio improved by 100 bps at 59.9%.

For the Dec-21 quarter, the OPM expanded from 27.03% in Dec-20 to 30.28% in Dec-21 quarter. The met profits were up 30.79% at Rs.3,403 crore as provisions turned into a writeback of COVID provisions made earlier, strongly boost bottom line. Gross NPAs were slightly higher at 2.71% but net NPAs at 0.87% hint at substantial provisioning done. The average credit cost on advances stood at 0.35% with capital adequacy at 21.3%.

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