Kotak Mahindra Bank reports strong Q1FY24 results, PAT up 67% YoY

Kotak Mahindra Bank’s board of directors has announced unaudited standalone and consolidated results for Q1FY24, witnessing a significant increase across key metrics compared to the same period last year.

The bank’s Profit After Tax (PAT) for Q1FY24 was recorded at ₹ 3,452 crore, a significant 67% YoY increase from ₹ 2,071 crore in Q1FY23. The Net Interest Income (NII) for the same quarter rose by 33% YoY, standing at ₹ 6,234 crore compared to ₹ 4,697 crore in Q1FY23. The Bank also reported a Net Interest Margin (NIM) of 5.57% for Q1FY24.

Kotak Mahindra Bank saw an increase in fees and services for Q1FY24, which amounted to ₹ 1,827 crore, marking a 20% YoY growth from the ₹ 1,528 crore of Q1FY23. The Bank’s operating profit for Q1FY24 stood at ₹ 4,950 crore, a significant 78% YoY increase from ₹ 2,783 crore in Q1FY23.

Kotak Mahindra Bank records substantial Q1FY24 growth. Photo courtesy of Indrajit Das/Wikimedia Commons.

The customer base of the bank increased to 43.5 million as at June 30, 2023, compared to 34.5 million as at June 30, 2022. The Bank’s advances increased by 19% YoY to ₹ 3,37,031 crore, while customer assets, comprising advances and credit substitutes, increased by 18% YoY to ₹ 3,62,204 crore. Unsecured retail advances as a percentage of net advances stood at 10.7% as at June 30, 2023, while the CASA ratio for the same date was 49.0%.

The bank saw an 8% increase in average current deposits, reaching ₹ 59,431 crore for Q1FY24. The average term deposit rose by 40% from ₹ 130,035 crore for Q1FY23 to ₹ 182,047 crore for Q1FY24. The bank’s new ActivMoney feature, launched in Q1FY24, witnessed a 24% QoQ growth in TD sweep balance, reaching ₹ 28,990 crore.

As of June 30, 2023, the Gross Non-Performing Assets (GNPA) was at 1.77% and Net Non-Performing Assets (NNPA) was 0.40%. The Bank’s provision coverage ratio was at 78.0%. The Bank’s Capital Adequacy Ratio as at June 30, 2023, was 22.0% and CET I ratio of 20.9%.