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Kotak Bank's consolidated PAT for Q2FY18 increased by 20 per cent from the same period a year ago

Kotak Bank's consolidated PAT for Q2FY18 increased by 20 per cent from the same period a year ago

| @indiablooms | 26 Oct 2017, 05:48 pm
Kolkata, Oct 26, (IBNS): Kotak Mahindra Bank (Kotak Bank) reported that its consolidated profit after tax (PAT) for Q2FY18 increased by 20% to Rs 1,441 cr from Rs 1,202 cr in Q2FY17.

Kotak Mahindra Bank published its standalone and consolidated results for Q2FY18, in Mumbai, on Wednesday.

Under consolidated results, advances were up 22% to Rs 187,758 cr as on September 30, 2017 from Rs 154,078 cr as on September 30, 2016.

Customer assets (Advances + Investment Credit Substitutes) stood at Rs 196,615 cr as on September 30, 2017.

Net Interest Margin (NIM) for Q2FY18 stood at 4.30% (Q2FY17 – 4.46%)

Capital adequacy ratio (CAR), including unaudited profits as per Basel III, as on September 30, 2017 was 19.2%. Tier 1 ratio is 18.6%.

Total assets managed / advised by the Group as on September 30, 2017 were up 40% at Rs169,214 cr (Rs120,705 cr as on September 30, 2016).

Networth as on September 30, 2017 was Rs 46,975 cr (Rs 35,690 cr as on September 30, 2016).

In addition to the Bank, major subsidiaries who contributed to profit after tax for Q2FY18 are Kotak Mahindra Prime Rs 150 cr, Kotak Securities Rs 118 cr, Kotak Mahindra Old Mutual Life Insurance Rs 100 cr and Kotak Mahindra Investments Rs 55 cr.

On receipt of all the requisite approvals, the Bank acquired 26% stake in Kotak Life from Old Mutual plc. for Rs 1,293 cr on October 13, 2017.

Post the transaction, Kotak Life becomes a 100% subsidiary of the Bank.

Also, on September 27, 2017, the Bank consummated the transaction of acquisition of BSS Microfinance as a subsidiary of the Bank.

Kotak Mahindra Bank's standalone results revealed that Bank PAT for Q2FY18 increased to Rs 994 cr from Rs 813 cr in Q2FY17, up by 22%

Net Interest Income (NII) for Q2FY18 was up 16% to Rs 2,313 cr from Rs 1,995 cr in Q2FY17 Net Interest Margin (NIM) for Q2FY18 at 4.33% as against 4.47% in Q2FY17.

Advances as on September 30, 2017 were up 21% to Rs 152,574 cr (Rs126,015 cr as on September 30, 2016).

Bank’s customer assets (Advances + Investment Credit Substitutes) stood at Rs 161,057 cr as on September 30, 2017 up by 21%.

Savings deposits grew by 62% to Rs 53,490 cr as on September 30, 2017 compared to Rs 33,037 cr as on September 30, 2016.

Current account deposits grew by 17% to Rs 25,731 cr as  on September 30, 2017 compared to Rs 22,004 cr as on September 30, 2016.

CASA ratio as on September 30, 2017 stood at 47.8% compared to 39.0% as on September 30, 2016.

Average CASA deposits grew by 42% to Rs 70,861 cr for Q2FY18.

TD Sweep deposits as on September 30, 2017 were 7.0% of the total deposits.

Capital adequacy ratio of the Bank, including unaudited profits as per Basel III, as on September 30, 2017 is 19.4% and Tier I ratio is 18.7%.

As on September 30, 2017, the Bank has a network of 1,362 full-fledged branches and 2,164 ATM

As on September 30, 2017, GNPA was 2.47% and NNPA was 1.26%.

As on September 30, 2017, restructured loans considered standard were down to Rs 65 cr i.e. 0.04% of net advances.

As on September 30, 2017, SMA2 outstanding was Rs 250 cr (0.16% of net advances).

On the digital front, the Bank launched 811 on March 29, 2017, which is a completely digital and paperless account opening experience.

Total customers of the Bank are around 10.5 mn as on September 30, 2017, it reported.

According to the Bank, transactions for the Bank on mobile platform grew by 125% in terms of volume in Q2FY18 vis a vis a year ago.

During Q2FY18, the share of Recurring Deposits sourced digitally was 77% and that of Term Deposits was 60%.

The digital share of salaried personal loans rose to 29% in Q2FY18.

During the quarter, the Bank also launched a new customer-centric, mobile first website.

On a YoY basis, total payment gateway transactions for September, 2017 grew 147% in terms of volume and 68% in terms of value.

Online shopping payment gateway transactions from mobile was up 70% in September 2017.

Kotak Securities mobile transaction ADVs grew 81% in Q2FY18. 75% of the individual policies written by Kotak Life Insurance were sourced through Genie - a tablet-based end to end sales solution.

Further, 89% of the Banca channel sales in Q2FY18 were through Genie.

In the case of Kotak General Insurance, more than 25% of new business sourced through digital channels in Q2FY18.

It also launched online consumer durable finance loans through fintech tie-ups in Kotak Prime.

Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerate.

In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first nonbanking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd.

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