Kotak Mahindra Bank Q4 Results: Net Profit Rises 26%, Beats Estimate

Private sector lender Kotak Mahindra Bank saw its January-March net profit rise on higher core income and increased non-interest income.

The bank's net profit for the quarter stood at Rs 3,495 crore, up 26.3% year-on-year. Analysts polled by Bloomberg estimated a Rs 2,898 crore net profit for the three months. 

Net interest income, or core income, for the bank rose 35% from a year ago and stood at Rs 6,103 crore. Other income too rose 28.2% year-on-year to Rs 2,186 crore.

Gross non-performing asset ratio for the bank fell by 12 basis points sequentially to 1.78%. Similarly, net NPA improved to 0.37% as of March 31, 2023 compared with 0.43% as of December 31, 2022. 

Provisions for the quarter were flat sequentially at Rs 148 crore.

Kotak Mahindra Bank's total deposits grew by 16.5% year-on-year in Q4FY23 to Rs 3.63 lakh crore. Similarly, the bank's overall advances saw a growth of 18% year-on-year and rose from Rs 2.71 lakh crore in Q4 FY22 to Rs 3.19 lakh crore in Q4 FY23.

Kotak Mahindra Bank's credit card advances and retail microfinance loans grew at the fastest clip amongst different segments with respective year-on-year growth of 81% and 103%.

The bank's home loans grew by 22% year-on-year to Rs 92,731 crore in Q4 FY23.

The bank's current account-savings account or CASA ratio declined to 52.8% in the Q4 FY23, down from 53.3% in the third quarter of FY23. A year earlier as of March 31, 2022, the bank's CASA ratio stood at 60.7%.

On a consolidated level, Kotak Mahindra Bank's net profit for Q4FY23 was stood at Rs 4,566 crore, up 17% year-on-year from ₹ 3,892 crore in Q4FY22.

Kotak Mahindra Bank's operating expenses also rose 26% year-on-year to Rs 3,641 crore.