Kotak Mahindra Bank Announces Q3FY22
Mumbai, 28th January 2022: The Board of Directors of Kotak Mahindra Bank (“the Bank”) approved the unaudited standalone and consolidated results for Q3FY22, at the Board meeting held in Mumbai, today.
Consolidated results at a glance
Consolidated PAT for Q3FY22 was Rs. 3,403 crore, up 31% from Rs. 2,602 crore for Q3FY21 (Rs. 2,989 crore for Q2FY22).
For Q3FY22, the net contribution of non-bank entities was 37% of the consolidated PAT.
PAT of Bank and key subsidiaries are given below:
| PAT (Rs. crore) | Q3FY22 | Q3FY21 |
| Kotak Mahindra Bank | 2,131 | 1,854 |
| Kotak Securities | 270 | 184 |
| Kotak Mahindra Prime | 254 | 149 |
| Kotak Mahindra Life Insurance | 247 | 167 |
| Kotak Asset Management & Trustee Company | 149 | 91 |
| Kotak Mahindra Investments | 111 | 68 |
| Kotak Mahindra Capital Company | 103 | 38 |
At the consolidated level, the Return on Assets (ROA) (annualized) was 2.60% for Q3FY22 (2.21% for Q3FY21) and the Return on Equity (ROE) (annualized) was 14.8% for Q3FY22 (12.8% for Q3FY21).
Consolidated Capital adequacy ratio, including unaudited profits, as per Basel III as of December 31, 2021, was 24.5% and the Tier I ratio was 23.7%.
Consolidated Capital and Reserves & Surplus as of December 31, 2021, was Rs. 93,141 crores (Rs. 82,116 crores as of December 31, 2020). The Book Value per Share was Rs. 467.
AUM (Policyholders’) of Kotak Mahindra Life Insurance as of December 31, 2021, grew 23.8% YoY to Rs. 49,221 crore.
Consolidated Customer Assets grew by 21% from Rs. 255,768 crore as of December 31, 2020, to Rs. 309,042 crore as of December 31, 2021.
Total assets managed/advised by the Group as of December 31, 2021, were Rs. 386,465 crore up 23% over Rs. 314,833 crore as of December 31, 2020.
The Relationship Value of the customers of Wealth, Priority Banking and Investment Advisory was ~ Rs. 649,000 crore as at December 31, 2021 up 73% from ~ Rs. 375,000 crore as of December 31, 2020.
Kotak Mahindra Bank standalone results
The Bank’s PAT for Q3FY22 increased to Rs. 2,131 crore, up 15% from Rs. 1,854 crore for Q3FY21 (Rs. 2,032 crore for Q2FY22).
Net Interest Income (NII) for Q3FY22 increased to Rs. 4,334 crore, from Rs. 3,876 crore in Q3FY21, up 12%. Net Interest Margin (NIM) for Q3FY22 was at 4.62%.
Net Total Income for Q3FY22 was Rs. 5,698 crore, up 10% from Rs. 5,166 crore in Q3FY21. Other Income of Q3FY22 includes MTM gain/(loss) on investments of Rs. (484) cr (Q3FY21: Rs. 5 cr).
The operating profit for Q3FY22 was Rs. 2,701 crores (Q3FY21: Rs. 2,908 crores). The higher operating expenditure is driven by the Bank’s push for growth.
Net Customer additions in Q3FY22 was 2.1 mn against that of 0.8 mn in Q3FY21. Customers as at December 31, 2022, was 30.7 mn (25 mn as of December 31, 2021).
Customer Assets, which includes Advances and Credit substitutes, increased by 20% to Rs. 274,569 crore as of December 31, 2021, from Rs. 228,791 crore as at December 31, 2020 (Rs. 256,335 crore as at September 30, 2021). Advances increased by 18% to Rs. 252,935 crore as of December 31, 2021, from Rs. 214,085 crore as at December 31, 2020 (Rs. 234,947 crore as at September 30, 2021).
CASA ratio as of December 31, 2021, stood at 59.9% compared to 58.9% as of December 31, 2020.
Average Current deposits grew to Rs. 49,417 crore for 9MFY22 compared to Rs. 37,533 crore for 9MFY21. Average Savings deposits were Rs. 119,645 crore for 9MFY22 (9MFY21: Rs. 107,363 crores). Average TD Sweep up from Rs. 19,568 crore for 9MFY21 to Rs. 23,429 crore for 9MFY22.
As of December 31, 2021, COVID related provisions stood at Rs. 1,000 crore. In accordance with COVID and MSME Resolution Frameworks announced by RBI, the Bank has standard restructured fund-based outstanding of Rs. 1,364 core (0.54% of Advances) as at December 31, 2021.
As at December 31, 2021, GNPA was 2.71% & NNPA was 0.79%. Credit cost on advances for Q3FY22 was 35 bps (annualised) (excluding reversal of COVID provision) (63 bps for Q2FY22). Total provisions (incl specific, standard, COVID-19 related etc.) held as of December 31, 2021, was at Rs. 7,269 cr.
The capital adequacy ratio of the Bank, including unaudited profits, as per Basel III as of December 31, 2021, was 23.3% and the Tier I ratio was 22.4%.
The financial statements of Indian subsidiaries (excluding insurance companies) and associates are prepared as per Indian Accounting Standards in accordance with the Companies (Indian Accounting Standards) Rules, 2015. The financial statements of subsidiaries located outside India are prepared in accordance with accounting principles generally accepted in their respective countries. However, for the purpose of preparation of the consolidated financial results, the results of subsidiaries and associates are in accordance with Generally Accepted Accounting Principles in India (‘GAAP’) specified under Section 133 and relevant provision of Companies Act, 2013.