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Kotak Mahindra Bank gained momentum in trade on Thursday soon after the private sector bank reported results for the quarter ended June 30 which was lower than estimates but loan growth of 18 percent lifted the stock to a fresh 52-week high of 1,019.40 on the BSE.
The stock has been in a decent uptrend so far in the year 2017. It has already rallied nearly 40 percent largely on account of decent growth and stable asset quality.
We have collated top five takeaways from Q1 results:
Net Profit:
The private sector bank reported a consolidated net profit of Rs 1,347 crore for the quarter ended June 30 compared to Rs1,067 crore reported in the corresponding quarter of last fiscal.
On a standalone basis, the private banking major, posted 23 percent year on year rise in its standalone June quarter net profit at Rs 913 crore.
The number came in lower than a poll of analysts done by CNBC-TV18, which pegged the profit growth at 40.3 percent at Rs 1,041.1 crore for April-June quarter
Net Interest Income (NII):
The Net interest income (NII), or the difference between the interest income a bank earns from its lending activities and the interest paid depositors, rose 17 per cent on a year-on-year (YoY) basis to Rs 2,246 crore for the quarter ended June from Rs 1,919 crore reported in the year-ago period.
Consolidated net interest margin for Q1FY18 stood at 4.4% which was same compared to Q1FY17 of 4.4 percent.
Loan Growth:
Consolidated advances rose 19 percent to Rs175,474 crore as on June 30, 2017, from Rs147,004 crore as on June 30, 2016. Consolidated customer assets (Advances + Investment Credit Substitutes) stood at Rs185,272 cr as on June 30, 2017, up by 21 percent.
Asset Quality:
As on June 30, 2017, GNPA was 2.6 percent and net non-performing assets (NNPA) was at 1.2 percent. As on June 30, 2017, restructured loans considered standard were down to Rs80 crores i.e. 0.06 percent of net advances. As on June 30, 2017, SMA2 outstanding was Rs305 crores which is 0.21 percent of net advances.
The lender made provisions worth Rs 204 crore for the quarter, compared with Rs 267 crore in March quarter and Rs 179 crore in the year-ago period.
CASA Update:
Savings deposits grew by 44 percent to Rs44,026 crores as on June 30, 2017, compared to Rs30,564 crore as on June 30, 2016.
Current Account deposits grew by 27 percent to Rs27,742 cr as on June 30, 2017 compared to Rs21,854 cr as on June 30, 2016. CASA as on June 30, 2017 stood at 43.9 percent compared to 37.4 percent as on June 30, 2016. Average CASA deposits grew by 33 percent to Rs62,452 crores for Q1FY18.
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