Kotak Bank Q1 Results: Standalone PAT Rises By 67% YoY to Rs 3,452 Crore, NII Up 33%

Private sector lender, Kotak Mahindra Bank registered a standalone net profit of Rs 3,452 crore in the first quarter of FY24, rising by a whopping 67% from Rs 2,071 crore in Q1 of FY23. Standalone net interest income (NII), which is the difference between interest earned and expended, rose by 33% YoY, while net interest margin stood at 5.57% for the quarter.

In Q1FY24, NII came in at Rs 6,234 crore as compared to NII of Rs 4,697 crore in the corresponding period of the previous year. Operating profit for the quarter stood at Rs 4,950 crore up by 78% YoY.

Further, the bank's asset quality improved with gross non-performing assets (NPA) coming at 1.77% in Q1FY24 versus 2.24% in Q1FY23. While net NPA dipped to 0.40% as against 0.62% in Q1FY23. The lender's provision coverage ratio stood at 78%.

However, provisions and contingencies expanded by multi-fold to Rs 364.31 crore in Q1FY24 as against Rs 23.59 crore in Q1FY23. In the preceding quarter, provisions were at Rs 147.57 crore.

In terms of the balance sheet, Kotak Bank's advances increased 19% to Rs 3,37, 031 crore as of June 30, 2023, from Rs 282,665 crore as of June 30, 2022. Customer assets comprising advances and credit substitutes jumped by 18% YoY to Rs 3,62,204 crore as of June 30, 2023.

Meanwhile, unsecured retail advances (incl. Retail Micro Finance) as a percentage of net advances stood at 10.7% in Q1FY24, expanding from 7.9% as of June 30, 2022.

Additionally, average current deposits grew to Rs 59,431 crore for Q1FY24 compared to Rs 55,081 crore for Q1FY23 up 8%. Average Savings deposits stood at Rs 119,817 crore in Q1 of the current fiscal, compared to Rs 121,521 crore as at June 30, 2022. Also, the average Term deposit soared by 40% from Rs 130,035 crore for Q1FY23 to Rs 182,047 crore for Q1FY24.

The bank's CASA ratio as of June 30, 2023, stood at 49.0%.

While the capital adequacy ratio of Kotak Bank stood at 22% and CET I ratio at 20.9% in Q1FY24.

As of June 30, 2023, the bank's customer base stood at 43.5 million rising from 34.5 million in Q1FY23.

On BSE, Kotak Bank's share price ended at Rs 1971.10 apiece, up by 0.70% on Friday.