Kotak Mahindra Bank posts 33% rise in Q1 PAT - saving deposits, current account give stellar performance

Uday Kotak-led Kotak Mahindra Bank saw a whopping 33% rise in its June 2019 (Q1FY20) quarterly results. Kotak Bank bagged a net profit of Rs 1,360 crore compared to Rs 1,025 crore recorded in the corresponding period of the previous year. However, the bottom-line growth was below analysts estimates, as Bloomberg poll of experts had predicted net profit of Kotak to come around 1,430 crore during the quarter. On the other hand, net interest income (NII) came in at Rs 3,173 crore in Q1FY20, witnessing growth of 23% as against Rs 2,583 crore in Q1FY19. Meanwhile, net interest margin (NIM) was at 4.49% in Q1 versus 4.28% in Q1FY19. 

As on June 2019, Kotak Bank’s GNPA was 2.19% & NNPA was 0.73%. As on June 30, 2019, SMA2 outstanding was ` 332 cr (0.16% of net advances). As for provisions and contingencies, they declined to Rs 350.22 crore in Q1FY20 compared to Rs 498.98 crore in Q1FY19, but were higher from Rs 197.61 crore in Q4FY19. 

In its audit report, Kotak’s average savings deposits grew by 21% to Rs 78,654 cr for Q1FY20 compared to Rs 65,135 cr for Q1FY19. Average Current Account deposits grew by 23% to Rs 32,679 cr for Q1FY20 compared to Rs 26,649 cr for Q1FY19.While, CASA ratio as on June 30, 2019 stood at 50.7% compared to 50.3% as on June 30, 2018. TD Sweep deposits as on June 30, 2019 were 7% of the total deposits. Cost of SA for Q1FY20 was 5.51%. 

As for total advances were up 18% to Rs 208,030 cr as against Rs 176,927 cr as on June 30, 2018.

Further, the capital adequacy ratio of the Bank, as per Basel III, as on June 30, 2019 is 17.8% and Tier I ratio is 17.3%.

As on June 30, 2019, the Bank had a network of 1,503 full-fledged branches and 2,394 ATMs affording it the capacity and means to serve its customers through its wide presence. 

On a consolidated basis, the bank reported PAT of Rs 1,932 crore in June 2019 quarter,  from ` Rs 1,574 crore a year ago same period - which was up 23%.

Total assets managed / advised by the Group as on June 30, 2019 were up 19% at Rs  236,798 cr (` 199,193 cr as on June 30, 2018). Further, the Relationship Value of all the customers of Wealth and Priority Banking Offering ~ Rs 280,000 cr as on June 30, 2019 up from ~ Rs 254,000 cr as on June 30, 2018.

Ahead of the result announcement, the share price of Kotak plunged by 3.08% or Rs 46.15 on Sensex, ending at Rs 1453.65. The stock also touched an intraday high and low of Rs 1500 per piece and Rs 1442 per piece respectively.