Kotak Mahindra Bank Q4 Results: Profit Up 17.6% On Higher Other Income

Kotak Mahindra Bank Ltd.'s profit rose in the fourth quarter, beating analysts' estimates.

The lender's advances, including retail micro-finance, increased by 20% year-on-year to Rs 3.91 lakh crore in the quarter ended March. Unsecured retail advances as a percentage of net advances stood at 11.8%, slightly up from 11.6% in the previous quarter.

Specifically, home loans and LAP (Loan Against Property) grew by 15% year-on-year to Rs 1.06 lakh crore; personal loans, business loans, and consumer durables grew by 27% year-on-year to Rs 20,049 crore; and credit cards grew by 44% year-on-year to Rs 14,505 crore.

The bank also completed the acquisition of Sonata Microfinance in FY24.

On April 24, the RBI barred Kotak Mahindra Bank from issuing fresh credit cards and onboarding of new customers through its online and mobile banking channels with immediate effect.

In its Q4 investor presentation, the bank said that these directions will not materially impact its overall business.

The bank also announced plans to increase investments in its IT systems, focusing on a comprehensive plan to demonstrate sustainable compliance with the Baseline Cyber Security Framework for Banks and strengthen digital payment security controls, as stated in the presentation.

The current account and savings account ratio of the bank stood at 45.5% in the quarter.

Average current deposits grew by 4% year-on-year to Rs 60,160 crore, while average savings deposits grew by 5% year-on-year to Rs 1.23 lakh crore in the quarter ended March. Term deposits saw the highest growth, reaching Rs 2.24 lakh crore, up by 35% year-on-year.

The capital adequacy ratio (CAR) of the bank stood at 20.5%, with a Common Equity Tier 1 (CET-1) ratio of 19.2% for the quarter.