Kotak Mahindra Bank reports cons PAT up 84% to Rs 991cr

The Board of Directors of Kotak Mahindra Bank (‘The Bank’) took on record audited consolidated and stand-alone results for Q4FY08 and FY08, at a board meeting held in Mumbai, today.

Consolidated results at a glance

Rs. crore

# non annualised

Consolidated PAT up 84% to Rs 991 cr in FY08 from Rs 538 cr in FY07. For Q4FY08 consolidated PAT up 41% to Rs 240 cr from Rs 170 cr in Q4FY07.

Consolidated fee income up 59% to Rs 1,676 cr in FY08 from Rs 1,053 cr in FY07. For Q4FY08, fee income was up 37% to Rs 407 mn from Rs 297 cr in Q4FY07.

Consolidated advances up 41% YoY to Rs 21,985 cr as on March 31, 2008, with retail and commercial loans comprising 89% of the portfolio. Consolidated NIM for FY08 at 5.6%.

Consolidated book value per share as on March 31, 2008 was Rs. 169.0 (Rs. 99.1 as on March 31, 2007).

Consolidated Net NPA as at March 31, 2008 excluding stressed asset portfolio is 0.33%.

Total assets managed/ advised by the Group (including alternate assets) were Rs 36,544 cr (Rs 23,551 cr as on March 31, 2007). 

Kotak Mahindra Bank stand-alone results

PAT of the Bank (Standalone) up 108% to Rs 294 cr in FY08 from Rs 141 cr in FY07. For Q4FY08 PAT of the Bank grew 86% to Rs 69 cr from Rs 37 cr in Q4FY07.

Net Interest Income (NII) of the Bank (Standalone) for FY08 was up 98% YoY to Rs 1,226 cr from Rs 620 cr in FY07. For Q4FY08, NII of the Bank (Standalone) grew 114% to Rs 835 cr from Rs 391 cr in Q4FY07.

Bank had 178 full-fledged bank branches (105 branches as on March 31, 2007) across 109 locations and 313 ATMs as on March 31, 2008. Bank plans to open 100 branches in FY09.

Deposits of the Bank grew 49% to Rs 16,005 cr (excluding temporary deposits held as collection bankers to IPOs) as on March 31, 2008 from Rs 10,251 cr as on March 31, 2007. CASA deposits (excluding temporary deposits held as collection bankers to IPOs) comprised 27% of total deposits (22% as on March 31, 2007). Total numbers of deposit accounts have more than doubled at 749,000 as on March 31, 2008 (350,000 as on March 31, 2007).

As on May 8, 2008 customers of the Bank had negative MTM exposures aggregating to Rs 612 cr on account of forex derivatives transactions. As on March 31, 2008, Bank carries a provision of Rs 86 cr towards stressed cases. In this regard, Bank has no exposure to SME clients.

The Board has declared a dividend of 7.5% for 2007-08 (7% for 2006-07).

Asim Ghosh appointed Director         

The Bank has appointed Mr. Asim Ghosh as a director. Mr. Ghosh is the Managing Director of Vodafone Essar Limited (earlier Hutchison Essar Limited). He has extensive experience in consumer goods and telecom services industry. Mr Ghosh is a B.Tech from IIT Delhi and an MBA from Wharton School, University of Pennsylvania.

Business highlights

·    Kotak Mahindra Bank was in the Top 5 for Corporate Governance amongst companies by technical criteria by IR Global Rankings 2008 for the Asia Pacific / Africa region.

·     Kotak’s Investor Relation (IR) website was adjudged the most voted company in Asia Pacific / Africa by IR Global Rankings 2008 in five categories; Corporate Governance Practices, Financial Disclosure Procedures, IR Team, IR Program & IR Website.

·     Housing Finance Division of the Bank won the award for “Best in Customer Information and Responsiveness” among all HFI’s and Banks in the award hosted by Maharashtra Chamber of Housing Industry (MCHI).

·       In April 2008, Kotak Mahindra Bank launched its Credit Cards.

·       Kotak Investment Banking was ranked No. 1 for FY08 by Prime Database for two league tables (a) India Domestic IPOs, (b) QIPs including Government Divestments.

·     Kotak Investment Banking was ranked No. 1 in the India M&A league table by India Advisory Partners.

·       Kotak Securities was awarded the following during Q4FY08.

o    Best Performing Equity Broker in India – CNBC Financial Advisor Awards 2008.

o     Avaya Customer Responsiveness Awards (2007) in Financial Services Sector.

o     Best Brokerage Firm in India by Asiamoney in 2007.

o     Leading Equity House in India in Thomson Excel Surveys Awards for the year 2007.

·        Three of Kotak Mutual Fund’s equity schemes (Kotak 30, Kotak Opportunities and Kotak Balance) ranked CPR 1 by CRISIL for the quarter ended 31st March 2008.

·     Kotak Life Insurance (KLI) total premium income grew 74% to Rs. 1,691 cr in FY08 from Rs. 972 cr in FY07. For Q4FY08, premium income grew 73% to Rs. 806 cr from Rs. 467 cr in Q4FY07.

o      First year regular premium grew 89% to Rs 1,046 cr in FY08 from Rs 553 cr in FY07. For Q4FY08 first year regular premium grew 103% to Rs. 522 cr from Rs 257 cr in Q4FY07.

·     Group employee strength was around 20,000 as on March 31, 2008 (10,800 employees as on March 31, 2007).

Sourced From: Genesis Burson-Marsteller