Kotak Mahindra Bank Q2 results: Net profit surges 51% to Rs 1,724 cr

Kotak Mahindra Bank today reported a bigger-than-expected 51% jump in its second-quarter net profit, boosted by higher interest income and lower tax expenses. Kotak`s results has come at a time when Indian banks, are struggling to grow their lending activity. Kotak`s loan growth during the quarter slowed to 15%, versus a growth of 18% last quarter and 21% in the same period last year, according to the company's regulatory filing with the BSE.

Highlights of Kotak Mahindra Bank standalone results

1. Bank’s PAT for Q2FY20 increased to Rs 1,724 cr from Rs 1,142 cr in Q2FY19 up 51%.
2. Net Interest Income (NII) for Q2FY20 increased to Rs 3,350 cr from Rs 2,676 cr in Q2FY19, up by 25%. Net Interest Margin (NIM) for Q2FY20 at 4.61% up from 4.19% in Q2FY19.
3. CASA ratio as on September 30, 2019 stood at53.6% compared to 50.2% as on September 30, 2018. TD Sweep deposits as on September 30, 2019 were 7.1% of the total deposits. Cost of SA for Q2FY20 was 5.37%.
4. Average Savings deposits grew by 20% to Rs 80,425 cr for Q2FY20 compared to Rs 66,892 cr for Q2FY19. Average Current Account deposits grew by 22% to Rs 33,216 cr for Q2FY20 compared to Rs 27,231 cr for Q2FY19.
5. Advances as on September 30, 2019 were up 15% to Rs 213,299 cr (Rs 184,940 cr as on September 30, 2018)
6. Capital adequacy ratio of the Bank, as per Basel III, as on September 30, 2019 is 18.2% and Tier I ratio is 17.6%.
7. As on September 30, 2019, the Bank had a network of 1,512 full-fledged branches and 2,429 ATMs affording it the capacity and means to serve its customers through its wide presence.
8. To augment its footprint in the international arena, Kotak Mahindra Bank (Kotak) has launched its very first overseas branch at the Dubai International Financial Centre(DIFC), Dubai,UAE after receiving due regulatory approvals.
9. As on September 30, 2019, GNPA was 2.32% & NNPA was 0.85%. As on September 30, 2019, SMA2 outstanding was Rs 431 cr (0.2% of net advances).

Consolidated results at a glance

1. Consolidated PAT for Q2FY20 increased to Rs 2,407 cr from Rs 1,747 cr in Q2FY19 up 38%.
2. For Q2FY20, the Bank’s contribution to the PAT was Rs 1,724 cr. The subsidiaries and associates net contribution was 28% of the consolidated PAT
3. Consolidated Capital& Reserves and Surplus as on September 30, 2019 was Rs 62,563 cr (Rs 54,349 cr as on September 30,2019).
4. Consolidated Advances were Rs 248,740 cr as on September 30, 2019.
5. Total assets managed / advised by the Group as on September 30, 2019 were up 21% at Rs 242,025 cr (Rs 199,382 cr as on September 30, 2018).
6. The Relationship Value of all the customers of Wealth and Priority Banking Offering ~ Rs 295,000 cr as on September 30, 2019 up from ~ Rs 248,000 cr as on September 30, 2018.
7. The market share of Kotak Securities in the cash segment was 9.4% for H1FY20 (8.7% H1FY19)

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Established in 1985, Kotak Mahindra Group is one of India's leading financialservices conglomerates. As on 30th September, 2019, the net worth of the Group stands at Rs 62,653 crore.