Kotak Mahindra Bank Consolidated PAT for Q3FY22 Rs. 3,403 cr, up 31% yoy

Consolidated PAT for Q3FY22 was Rs. 3,403 crore, up 31% from Rs. 2,602 crore for Q3FY21 (Rs.2,989 crore for Q2FY22).

Kotak Mahindra Bank Consolidated PAT for Q3FY22 Rs. 3,403 cr, up 31% yoy

Mumbai: The Board of Directors of Kotak Mahindra Bank (“the Bank”) approved the unaudited standalone and consolidated results for Q3FY22, at the Board meeting held in Mumbai, today.

Consolidated results at a glance

Consolidated PAT for Q3FY22 was Rs. 3,403 crore, up 31% from Rs. 2,602 crore for Q3FY21 (Rs.2,989 crore for Q2FY22).

For Q3FY22, net contribution of non-bank entities was 37% of the consolidated PAT

PAT of Bank and key subsidiaries are: 
PAT (` crore)                          Q3FY22           Q3FY21
Kotak Mahindra Bank                2,131               1,854
Kotak Securities                        270                  184
Kotak Mahindra Prime               254                  149
Kotak Mahindra Life Insurance  247                  167
Kotak Asset Management & 
Trustee Company                      149                    91
Kotak Mahindra Investments     111                    68
Kotak Mahindra Capital
Company                                  103                    38

At the consolidated level, the Return on Assets (ROA) (annualized) was 2.60% for Q3FY22 (2.21% for Q3FY21) and the Return on Equity (ROE) (annualized) was 14.8% for Q3FY22 (12.8% for Q3FY21). Consolidated Capital adequacy ratio, including unaudited profits, as per Basel III as at December 31, 2021 was 24.5% and Tier I ratio was 23.7%. Consolidated Capital and Reserves & Surplus as at December 31, 2021 was 93,141 crore ( 82,116 crore as at December 31, 2020). The Book Value per Share was 467. AUM (Policyholders’) of Kotak Mahindra Life Insurance as on December 31, 2021 grew 23.8% yoy to 49,221 crore.

Consolidated Customer Assets grew by 21% from 255,768 crore as at December 31, 2020 to 309,042 crore as at December 31, 2021. Total assets managed / advised by the Group as at December 31, 2021 were 386,465 crore up 23% over 314,833 crore as at December 31, 2020. The Relationship Value of the customers of Wealth, Priority Banking and Investment Advisory was 649,000 crore as at December 31, 2021 up 73% from 375,000 crore as at December 31, 2020. 

Kotak Mahindra Bank standalone results

The Bank’s PAT for Q3FY22 increased to 2,131 crore, up 15% from 1,854 crore for Q3FY21 (` 2,032 crore for Q2FY22). Net Interest Income (NII) for Q3FY22 increased to 4,334 crore, from 3,876 crore in Q3FY21, up 12%. Net Interest Margin (NIM) for Q3FY22 was at 4.62%. Net Total Income for Q3FY22 was 5,698 crore, up 10% from 5,166 crore in Q3FY21. Other Income of Q3FY22 includes MTM gain/(loss) on investments of Rs. (484) cr (Q3FY21: Rs. 5 cr). Operating profit for Q3FY22 was 2,701 crore (Q3FY21: 2,908 crore). The higher operating expenditure is driven by the Bank’s push for growth. Net Customer additions in Q3FY22 was 2.1 mn against that of 0.8 mn in Q3FY21. Customers as at December 31, 2022 was 30.7 mn (25 mn as at December 31, 2021). Customer Assets, which includes Advances and Credit substitutes, increased by 20% to 274,569 crore as at December 31, 2021 from 228,791 crore as at December 31, 2020 (256,335 crore as at September 30, 2021). Advances increased by 18% to 252,935 crore as at December 31, 2021 from 214,085 crore as at December 31, 2020 (` 234,947 crore as at September 30, 2021).

CASA ratio as at December 31, 2021 stood at 59.9% compared to 58.9% as at December 31, 2020. Average Current deposits grew to 49,417 crore for 9MFY22 compared to 37,533 crore for 9MFY21.

Average Savings deposits was 119,645 crore for 9MFY22 (9MFY21: 107,363 crore). Average TD Sweep up from 19,568 crore for 9MFY21 to 23,429 crore for 9MFY22. As at December 31, 2021, COVID related provisions stood at 1,000 crore. In accordance with COVID and MSME Resolution Frameworks announced by RBI, the Bank has standard restructured fund-based outstanding of 1,364 core (0.54% of Advances) as at December 31, 2021.

As at December 31, 2021, GNPA was 2.71% & NNPA was 0.79%. 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 December 31, 2021 was at 7,269 cr. Capital adequacy ratio of the Bank, including unaudited profits, as per Basel III as at December 31, 2021 was 23.3% and Tier I ratio was 22.4%.