Kotak Mahindra Bank Q4 result: Net profit rises 65% to ₹2,767 crore

Kotak Mahindra Bank has reported a standalone profit of ₹2,767 crore for the January-March quarter of the financial year 2021-22, recording a growth of 65% from ₹1,682 crore in Q4 FY21.

The net profit for whole financial year FY22 increased 23% to ₹8,573 crore from ₹6,965 crore. On the consolidated basis, PAT for Q4 FY22 was ₹3,892 crore, up 50% from ₹2,589 crore in Q4 FY21 and for FY22 increased to ₹ 12,089 crore from ₹9,990 crore in FY21, up 21%.

The bank's net interest income (NII) for Q4 FY22 increased to ₹4,521 crore from ₹3,843 crore in Q4FY21, up 18%. For FY22, the NII rose to ₹16,818 crore, from ₹15,340 crore in FY21, up 10%.

Kotak Bank's Q4 FY22 operating profit rose 13% YoY to ₹3,340 crore vs ₹2,962 crore during the same quarter last year. The private lender's net interest margin was 4.78% for Q4 FY22, while fees and services for the said quarter grew 23% YoY to ₹1,697 crore.

Kotak Bank's gross non-performing assets reduced to 2.34% from 3.25% during Q4 FY21. The net NPAs also reduced to 0.64% 1.21% as of March 31, 2021.

Its total provisions, including specific, standard, and COVID-19 related, held as on March 31, 2022, was ₹6,710 crore. As of March 31, 2022, Kotak bank's COVID related provisions were ₹547 crore. "In accordance with COVID Resolution Framework announced by the RBI, the bank has standard restructured fund-based outstanding of ₹417 crore (0.15% of advances), says the bank. Under the MSME resolution framework, it has standard restructured fund-based outstanding of ₹788 crore (0.29% of advances) as of March 31, 2022.

As of March 31, the bank's capital adequacy ratio was 22.7% and Tier I ratio was 21.7%. Kotak Bank's board of directors has recommended a dividend of ₹1.10 per equity share, having face value of ₹5 for the year ended March 31, 2022, subject to the approval of shareholders.

Kotak Bank's CASA ratio as of March 31, 2022, stood at 60.7%. It's average current deposits grew 26% to ₹49,776 crore for FY22 vs ₹39,481 crore for FY21.

Kotak Bank's net customer additions in Q4 FY22 stood at 2 million against 1.1 million in Q4 FY21. As of March 31, 2022, its total customers were 32.7 million, up from 26 million as of March 31, 2021.

The bank's customer assets, which include advances and credit substitutes, increased by 23% to ₹292,481 crore as of March 31, 2022, from ₹2,38,838 crore as of March 31, 2021. Its advances grew 21% to ₹2,71,254 crore as of March 31, 2022, from ₹2,23,670 crore as of March 31, 2021.

On the back of strong earnings, the share has risen 0.09% to ₹1,775.95 on the NSE today.