Kotak Mahindra Bank Q3FY22 profit jumps 15 pc YoY to Rs 2,131 cr, NII grows 12 pc to Rs 4,334 cr

The bank's Net Interest Income (NII) for Q3FY22 increased to Rs 4,334 crore, up 12 percent from Rs 3,876 crore in Q3FY21, while its Net Interest Margin (NIM) for Q3FY22 was at 4.6 percent.

Net Total Income during the period under review grew by 10 percent to Rs 5,698 crore against Rs 5,166 crore in Q3FY21.

Other Income of Q3FY22 includes Market to Market (MTM) gain/(loss) on investments of Rs (484) cr (Q3FY21: Rs 5 cr).

The bank said its operating profit for Q3FY22 declined to Rs 2,701 crore compared to Rs 2,908 crore recorded in the same quarter last year due to higher operating expenditure driven by its push for growth.

The bank's net customer additions in Q3FY22 was 2.1 million against that of 0.8 mn in Q3FY21. Customers as at December 31, 2021 was 30.7 mn while there were 25 million customers on December 31, 2020.

Customer assets, which includes advances and credit substitutes, increased by 20 percent to Rs 274,569 crore as at December 31, 2021 from Rs 228,791 crore in the corresponding quarter previous year.

In the September quarter of FY22, the customer assets stood at Rs 256,335 crore, the bank said.  

There was an 18 percent increase in advances to Rs 252,935 crore in the quarter ended December 2021 compared to Rs 214,085 crore in the year-ago period. The advances stood at Rs 234,947 crore in the previous quarter of FY22.

The CASA ratio, which indicates how much of a bank's total deposits are in both current and savings accounts, stood at 59.9 percent as at December 31, 2021 compared to 58.9 percent as at December 31, 2020.
 
Average Current deposits grew to Rs 49,417 crore for 9MFY22 compared to Rs 37,533 crore for 9MFY21.

Average Savings deposits was Rs 119,645 crore for 9MFY22 (9MFY21: Rs 107,363 crore). Average TD Sweep up from Rs 19,568 crore for 9MFY21 to Rs 23,429 crore for 9MFY22.

As at December 31, 2021, COVID related provisions stood at Rs 1,000 crore. In accordance with COVID and MSME Resolution Frameworks announced by RBI, the bank has standard restructured fund-based outstanding of Rs 1,364 core (0.54 percent of Advances) as at December 31, 2021.

Gross Non Performing Assets (GNPA) stood at 2.71 percent while the Net Non Performing Asset was 0.79 percent during Q3FY22.

Credit cost on advances for Q3FY22 was 35 bps (annualised) (excluding reversal of COVID provision) (63 bps for Q2FY22).

Total provisions (incl specific, standard, COVID-19 related etc.) held as on the end of the third quarter was at Rs 7,269 crore.

Capital adequacy ratio of the bank, including unaudited profits, as per Basel III as at December 31, 2021 was 23.3 percent and Tier I ratio was 22.4 percent.

At the consolidated level, Profit After Tax (PAT) stood at Rs 3,403 crore for Q3FY22, up 31 percent from Rs 2,602 crore for Q3FY21 and 13.85 percent from Rs 2,989 crore for Q2FY22.

The Return on Assets (ROA) (annualized) was 2.60 percent for Q3FY22. This was 2.21 percent for Q3FY21.

The bank said its Return on Equity (ROE) (annualized) was 14.8 percent for Q3FY22, which was 12.8 percent in the year-ago period.

Consolidated Capital and Reserves & Surplus as at December 31, 2021 was Rs 93,141 crore (Rs 82,116 crore as at December 31, 2020). The Book Value per Share was Rs 467.

AUM (Policyholders’) of Kotak Mahindra Life Insurance as on December 31, 2021 grew 23.8 percent yoy to Rs  49,221 crore.

Consolidated Customer Assets grew by 21 percent from Rs 255,768 crore as at December 31, 2020 to Rs 309,042 crore as at December 31, 2021.

 Total assets managed / advised by the Group as at December 31, 2021 were Rs 386,465 crore up 23 percent over Rs 314,833 crore as at December 31, 2020.

 The Relationship Value of the customers of Wealth, Priority Banking and Investment Advisory was approximately Rs 649,000 crore as at December 31, 2021 up 73 percent from approximately Rs  375,000 crore as at December 31, 2020.