Kotak Mahindra Bank Q4 Results 2018: Profit jumps 27% to Rs 1,789 crore; Uday Kotak re-designated as MD, CEO

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Updated: April 30, 2018 4:51:59 PM

Kotak Mahindra Bank Q4 Results 2018: India's fourth-largest private sector bank Kotak Mahindra Bank on Monday reported a rise of 27% in consolidated net profit to Rs 1,789 crore for the quarter ended 31 March 2018 following a marginal rise in provisioning as asset quality improved.

Kotak Mahindra Bank Q4 Results 2018: Following the earnings reaction, shares of Kotak Mahindra Bank rose 2.5% to a lifetime high of Rs 1218.3 on BSE on Monday. (Image: Reuters)

Kotak Mahindra Bank Q4 Results 2018: India’s fourth-largest private sector bank by assets Kotak Mahindra Bank on Monday reported a rise of 27% in consolidated net profit to Rs 1,789 crore for the quarter ended 31 March 2018 following a marginal rise in the provisioning as the asset quality improved in the reporting period. Kotak Mahindra Bank posted a net profit of Rs 1,404 crore in the January-March duration of the financial year 2016-2017. “The board of directors has re-designated Mr Uday Kotak as Managing Director & CEO with effect from 1 May 2018, in line with good governance practice,” Kotak Mahindra Bank said in a statement.

For the full fiscal year 2017-2018, Kotak Mahindra Bank’s net profit grew by 26% to Rs 6,201 crore as against a net profit of Rs 4,940 crore in the financial year 2016-2017. Among the consolidated profit figures, Kotak Mahindra Bank‘s (standalone) contribution in the net profit for the fourth-quarter of FY18 stood at Rs 1,124 crore, up by 15% from Rs 976 crore in the comparable quarter last year while the bank posted a net profit of Rs 4,084 crore, up by 20% as compared to Rs 3,411 crore in FY17. The consolidated net income of Kotak Mahindra Bank jumped 9.25% to Rs 10,874.12 crore for the Jan-Mar period of the fiscal year 2017-2018 as against Rs 9,953.57 crore for the fiscal year 2016-2017.

On the assets front, Kotak Mahindra Bank‘s balance sheet size grew to Rs 2,64,933.39 crore, up by 23.46% as at 31 March 2018 as compared to Rs 2,14,589.96 at the end of 31 March 2018. In relative terms, the gross NPAs of Kotak Mahindra Bank stood dropped to 1.95% at the end of 31 March 2018 from 2.01% as at 31 December 2017 and 2.25% as at 31 March 2018 while net NPAs declined to 0.86% at the end of 31 March 2018 as compared to 0.94% as at 31 December 2017 and 1.09% as at 31 March 2017.

For the quarter ended 31 March 2018, Kotak Mahindra Bank made a provisioning of Rs 313.37 crore, 45.91% higher than Rs 299.61 crore as compared to corresponding period of last financial year and 38.48% higher sequentially.

Kotak Mahindra Bank Q4 Results 2018 Highlights

  1. Kotak Mahindra Bank’s net interest margin (NIM) for Q4FY18 at 4.35% as against 4.63% in Q4FY17
  2. Kotak Mahindra Bank’s net interest income (NII) for FY18 increased to Rs 9,532 crore from Rs 8,126 crore in FY17 up 17% and for Q4FY18 up 19% to Rs 2,580 cr from Rs 2,161 cr in Q4FY17
  3. Kotak Mahindra Bank’s advances as on 31 March 2018 were up 25% to Rs 1,69,718 crore from Rs 1,36,082 crore as on March 31, 2017.
  4. Kotak Mahindra Bank’s capital adequacy ratio as per Basel III is 18.2% as on 31 March 2018 and Tier I ratio is 17.6%.

The board of directors of the Bank have proposed a dividend of Rs 0. 70 per share having face value Rs 5 for the year ended
31 March 2018 subject to the approval of shareholders at the annual general meeting, Kotak Mahindra Bank said in an exchange filing. Following the earnings reaction, shares of Kotak Mahindra Bank rose 2.5% to a lifetime high of Rs 1218.3 before closing up 1.83% at Rs 1210.35 on BSE on Monday. Kotak Mahindra Bank Ltd has a national footprint of 1,388 branches and 2,199 ATMs at the end of 31 March 2018 with a combined net worth of Rs 50,486 crore as on March 31, 2018.

 

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