Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
- 24 Jul 2023
- ICICIdirect
-
Share
-
-
-
-
-
KOTAK MAHINDRA BANK Q1 RESULTS 2024: NET PROFIT SOARS
KOTAKBANK - 2226 Change: 76.20 (3.54 %)
Kotak Mahindra Bank reported its Q1FY24 numbers on Saturday afternoon. On Friday, Kotak Mahindra Bank's share price closed at Rs 1,971 per share, up 0.70%, despite the blood bath in the market. Let us look at Kotak Bank's result in detail.
About Kotak Mahindra Bank
Kotak Mahindra Bank is a leading private-sector bank, offering a wide range of financial products and services, including banking, insurance, and wealth management. Founded in 1985, it has grown to become one of the country's most prominent banking institutions, with a strong presence in various financial sectors.
Crucial parameters
- PE: 35.81
- 52-week high: Rs 2,063.00
- Market Cap: Rs 3,91,699.37 crore
- ROE: 13.11
Share price movement
In the last one month, the bank's share price has jumped by nearly 8%. In 2023, the rise in share price has been the same. For the 5-year time frame, the share price has given a sub-par return of only 50%, lower than the benchmark and peers.
How were Kotak Mahindra Bank's Q1FY24 results?
Kotak Mahindra Bank Q1FY24 results details are as below:
Net Profit: The bank has reported a consolidated profit of Rs 4,150.19 crore, an exceptional rise in net profits. The profits have increased from Rs 2,755 crore in the year-ago period, recording a growth of 50.3% YoY. On a standalone basis, the net profit increased by 66.7% on-year to Rs 3,452.30 crore.
Net Interest Income (NII): Net Interest Income (NII) is used to measure the profitability of a bank's core lending and borrowing activities. It represents the difference between the interest earned from a bank's interest-earning assets, such as loans, advances, and investments and the interest paid on its interest-bearing liabilities, like deposits and borrowings.
Kotak Mahindra Bank reported an NII of Rs 6,234 crore for the first quarter of the current financial year. The NII increased by 32.7% from Rs 4,697 crore reported for the same period of the last financial year. The Net Interest Margins (NIM) increased from 4.92% in Q1FY23 to 5.57% in Q1FY24.
Asset Quality: Kotak Mahindra Bank's Gross Net Performing Assets (GNPA) for the quarter ended June was 1.77%. It has decreased sharply from the 2.24% reported in the year-ago period and marginally from Q4FY23's GNPA of 1.78%. Net NPA lowered from 0.62% from a year ago period to 0.40%. However, sequentially, the NNPA increased by 3 basis points. In absolute terms, GNPA and NNPA for the quarter ended June stood at Rs 5,909 crore and Rs 1,302 crore, respectively.
Advances and Deposits: The Deposits reported by the bank for the quarter ending June were at Rs 3.86 lakh crore, increased from Rs 3.16% from the year-ago period and Rs 3.63 lakh crore in Q4FY23. Net Advances have increased YoY by 17% to Rs 3.28 lakh crore and 3% sequentially. CASA ratio stood at 49%, down from 58.1% in Q1FY23, and 52.8% in Q4FY23.
Update from Subsidiaries
- Kotak Mahindra Prime: It reported an NII of Rs 459 crore, a jump of nearly 10% from the year-ago period. PAT increased from Rs 157 crore in Q1FY23 to Rs 218 crore in Q1FY24. NNPA fell sharply from 1.5% to 0.8% year on year.
- Kotak Mahindra Life Insurance: The profit after tax (PAT) reduced to Rs 193 crore for the first quarter of the current financial year. In the same quarter last year, the PAT reported was Rs 248 crore. Overall Group Premium for Q1FY24 grew by 30.7% YoY.
- Kotak Securities: Total Income from this business increased from Rs 744 crore in Q1FY23 to Rs 805 crore in Q1FY24. PAT remained flat at Rs 219 crore for the quarter ending June'23. Compared to last year (June quarter), the overall market share has increased from 4.2% to 7.5%.
- Kotak Mahindra AMC: Average AUM for the June quarter stood at Rs 3.13 lakh crore, an excellent double-digit growth over the same period last year. PAT remained flat at Rs 106 crore in Q1FY24.
To sum up
Bank's profit has increased sharply in this quarter. The asset quality has also improved compared to the June quarter last year. However, the CASA has fallen sharply, which could be a sign of worry. Lower CASA suggests that a bank is relying more on high-cost sources of funds for its operations. CASA is a significant indicator of a bank's cost of funds, as it includes both current accounts and savings accounts, which generally pay lower interest rates to depositors compared to fixed deposits or other term deposits.