Kotak Mahindra Bank Q1 results | Here are 5 highlights

Kotak Mahindra Bank

Kotak Mahindra Bank, on July 22, reported healthy standalone first quarter earnings with double-digit growth in the bottom line on strong growth in net interest income (NII) and improvement in asset quality.

Here are the top five takeaways from the lender's Q1 FY24 earnings:

Strong net profit

The private lender reported a 50.62 percent year-on-year (YoY) rise in its consolidated profit at Rs 4,150.19 crore in the April-June quarter.

On a standalone basis, net profit rose 66.7 percent on-year to Rs 3,452.30 crore.

In the year-ago quarter, the Mumbai-based private sector lender reported a standalone net profit of Rs 3,495.59 crore.

Also read: Kotak Mahindra Bank Q1 results: Consolidated net profit up 50.62% at Rs 4,150.19 crore

Net interest income

Kotak Mahindra Bank, in the reporting quarter, registered 32.72 percent growth in NII to Rs 6,234 crore.

In the corresponding quarter last year, the lender reported NII of Rs 4,697 crore and Rs 6,103 crore in the previous quarter.

Net interest income is the difference between interest earned and interest expended.

Net interest margin (NIM) was 5.57 percent for Q1 FY24.

Asset quality

The asset quality of the bank improved in the April-June quarter.

During the quarter, the gross non-performing asset (GNPA) ratio fell to 1.77 percent from 1.78 percent in the quarter-ago period, and 2.24 percent in the year-ago period.

The net NPA ratio fell to 0.43 percent from 0.41 percent in the previous quarter and 0.69 percent in the year-ago period.

Unsecured retail loans

Kotak Mahindra Bank recorded an increase in unsecured retail loans during the April-June quarter compared to the year-ago period, with credit card outstandings and microfinance loans surging aggressively.

Retail unsecured loans at Kotak Mahindra Bank reached 10.7 percent of the total loan book as at the end of June 2023, up from 7.9 percent a year ago, according to an investor presentation by the private sector lender.

Retail microfinance loans surged 91 percent over last year, while credit card out standings jumped 67 percent.

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Deposit

Average current deposits grew 8 percent to Rs 59,431 crore from Rs 55,081 crore in Q1 FY23. But there was a drop in average savings deposits to Rs 1.2 lakh crore from Rs 1.22 lakh crore in the year-ago period.

Average term deposits were up 40 percent from Rs 1.30 lakh crore in the year-ago period to Rs 1.82 lakh crore for Q1 FY24.

The current account, savings account (CASA) ratio stood at 49.0 percent.