Kotak Mahindra Bank reported 9.54% growth yoy in total consolidated revenues in the Dec-20 quarter at Rs14,834.99cr. The three big contributors to the yoy growth in revenues were insurance, treasury operations, asset management and broking. However, revenues were lower yoy in retail banking, corporate banking and in vehicle financing.
For the Dec-20 quarter, the operating profits were up 22.81% at Rs4,129cr. This growth in operating profits was on account of sharply lower interest costs in line with falling rates and surplus liquidity in the system. As a result, operating margin or OPM expanded from a level of 24.83% in Dec-19 to 27.83% in Dec-20 quarter.
Profit after tax (PAT) for the Dec-20 quarter was up by 10.77% at Rs2,601.67cr. This was due to higher provisioning and higher taxes on a yoy comparison. Consequently, the PAT margins improved moderately from 17.34% to 17.54% in the same period.
Financial highlights for Dec-20 compared yoy and sequentially
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Kotak Bank |
|
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|
Rs in Crore |
Dec-20 |
Dec-19 |
YOY |
Sep-20 |
QOQ |
|
Total Income (Rs cr) |
₹ 14,834.99 |
₹ 13,542.43 |
9.54% |
₹ 13,591.41 |
9.15% |
|
Operating Profit (Rs cr) |
₹ 4,129.03 |
₹ 3,362.06 |
22.81% |
₹ 4,387.69 |
-5.90% |
|
Net Profit (Rs cr) |
₹ 2,601.67 |
₹ 2,348.72 |
10.77% |
₹ 2,946.62 |
-11.71% |
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Diluted EPS (Rs.) |
₹ 13.14 |
₹ 12.28 |
|
₹ 14.89 |
|
|
Operating Margins |
27.83% |
24.83% |
|
32.28% |
|
|
Net Margins |
17.54% |
17.34% |
|
21.68% |
|
|
Gross NPA Ratio |
2.25% |
2.33% |
|
2.55% |
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Net NPA Ratio |
0.53% |
0.87% |
|
0.70% |
|
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Return on Assets |
0.56% |
0.58% |
|
0.64% |
|
|
Capital Adequacy |
21.54% |
18.21% |
|
22.05% |
|
Key takeaways from the Dec-20 quarter results
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For the Dec-20 quarter, the banking operations contributed 71% to the consolidated PAT while 29% contributions came from subsidiaries and associates. Activities like insurance, broking and asset management were profit accretive.
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Consolidated customer assets stood at Rs255,786cr while the consolidated net worth of the group stood at Rs81,616cr.
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Net interest income of the banking operations grew by 17% yoy while the net interest margins (NIM) stood at 4.51% for the Dec-20 quarter. The CASA share in total deposits moved up to 58.9% in Dec-20 compared to 53.7% in Dec-19.
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