Kotak Mahindra Bank gives nod to raise up to Rs 10,000 crore via issuance of NCDs

The NCDs would be issued on private placement basis, Kotak Mahindra Bank said

The board of Kotak Mahindra Bank has given its approval to the proposal to raise up to Rs 10,000 crore via the issuance of non-convertible debentures (NCDs), a regulatory filing said on January 20.

The board, in the meeting held today, gave its nod to "raise funds by way

of issuance of unsecured, redeemable, non-convertible debentures, on a private placement basis, for an amount up to Rs 10,000 crore", the private lender informed the exchanges.

The amount is planned to be raised in one or more tranches or series, during financial year 2024-25, the filing further noted.

The board nod for the fund raising proposal came on a day when the bank reported a net profit of Rs 3,005 crore for the quarter ended December 31, 2023.

The net profit grew by 7.6 percent on a year-on-year (YoY) basis but fall short of analyst expectations of Rs 3,243 crore.

The lender's net interest income (NII) was at Rs 6,554 crore during the quarter under review, higher than market estimations of Rs 6,434 crore. Net interest margin (NIM) of the lender came in at 5.22 percent.

The bank’s asset quality also improved during the October-December period, with gross non-performing assets (NPAs) at 1.73 percent, down from 1.91 percent from the year-ago quarter. Net NPA came in at 0.34 percent against 0.48 percent.

In the trading session on January 20, Kotak Mahindra Bank's scrip settled at Rs 1,806.45 apiece on the BSE , up by 2.3 percent as against the previous day's close.