Kotak Mahindra Bank reported a positive performance for Q4 FY24, exceeding analyst expectations.
Private sector lender Kotak Mahindra Bank on May 4, 2024 reported a net profit of ₹4133 crore for the January-March quarter of financial year 2023-24, which is up by 18% reported in the corresponding quarter of last year.
Profits :
- Standalone Profit After Tax (PAT) for Q4 FY24 grew 18.22% YoY to ₹4,133.30 crore.
- Consolidated PAT for Q4 FY24 increased 17% YoY to ₹5,337.2 crore.
- Full-year standalone PAT grew 26% YoY to ₹13,782 crore.
Net Interest Income (NII):
- NII for Q4 FY24 rose 13% YoY to ₹6,909 crore.
- Net Interest Margin (NIM) remained stable at 5.28% for Q4 FY24 compared to 5.22% in Q3 FY24.
Deposits and Advances:
- Loan growth was healthy at 20% YoY, with advances reaching ₹3.91 trillion as of March 31, 2024.
- Term deposits witnessed a significant increase, with an average of ₹2.25 trillion for Q4 FY24, reflecting a 35% YoY growth.
- Current and savings account deposits also saw a moderate increase of 3% and 5% YoY respectively for Q4 FY24.
Other Key Points:
- The bank declared a dividend of ₹2.00 per share for the financial year ended March 31, 2024.
- Operating profit grew steadily, with an increase of 18% YoY for Q4 FY24 and 32% YoY for FY24.
Key Takeaways:
- Kotak Mahindra Bank delivered strong profit growth despite a challenging economic environment.
- The bank’s focus on unsecured retail advances and a growing customer base is driving loan growth.
- The significant increase in term deposits reflects growing customer confidence.
- Growth in fee income indicates a well-diversified revenue stream.
- The bank will focus on existing customers and cross-selling products in the coming period.
- Shares of the bank closed for trading on May 3 at ₹1547.25 a piece, down by 1.81% & Down by 3.73% In A Week. Shares of Kotak Mahindra Bank have lost nearly 14% in just 2 weeks to fresh 52-week low levels following double-trouble from Reserve Bank Of India (RBI) as well as the resignation of Joint Managing Director KVS Manian.
Overall, Kotak Mahindra Bank delivered a strong financial performance in Q4 FY24, with healthy profit growth and a significant rise in term deposits. The bank’s focus on customer retention and product diversification positions it well for the future.
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