NEW DELHI: Kotak Mahindra Bank‘s net profit increased by 18.22% to Rs 4,133.30 crore year-on-year (YoY) in the fourth quarter, primarily driven by higher core lending income and robust loan growth.
The private lenders’ net interest income (NII) also rose by 13% YoY to Rs 6,909 crore in Q4 while its net interest margin (NIM), increased to 5.28% , compared to 5.22% in the previous quarter.
Kotak Bank’s advances and customer assets, which include advances and credit substitutes, both increased by 20% YoY, reaching Rs 391,729 crore and Rs 423,324 crore, respectively, as of March-end.
The bank’s asset quality improved, with the gross non-performing assets (GNPA) declining to 1.39% in Q4 from 1.78% in the same quarter of the previous financial year. The net non-performing assets (NNPA) stood at 0.34%, compared to 0.37% YoY.
The bank’s average current deposits, savings deposits, and term deposits all grew in Q4 FY24 compared to the same period in the previous year.
Its Return on Assets (ROA) for FY24 was 2.61%, and for Q4, it was 2.97%. The Return on Equity (ROE) for FY24 was 15.34%, and for Q4, it was 17.54%.
The bank’s board also announced a dividend of Rs 2 per share along with the declaration of results.
Lately, shares of Kotak Mahindra Bank have witnessed a decline of nearly 14% in just two weeks, reaching record 52-week low levels, following the Reserve Bank of India’s (RBI) directive preventing the lender to stop onboarding new customers through online and mobile banking channels and issuing fresh credit cards.
Meanwhile, the bank in response to the RBI’s directive, assured investors of its commitment to working with regulators to achieve the required technology standards. The bank plans to step up investments to fortify its IT systems by focusing on accelerating the execution of a comprehensive plan for core banking resilience, demonstrating sustainable compliance with the Baseline Cyber Security Framework for Banks, and strengthening digital payment security controls.
The lender also stated that it will redeploy resources to minimize the business impact and that the RBI action will not materially affect its overall business.
The private lenders’ net interest income (NII) also rose by 13% YoY to Rs 6,909 crore in Q4 while its net interest margin (NIM), increased to 5.28% , compared to 5.22% in the previous quarter.
Kotak Bank’s advances and customer assets, which include advances and credit substitutes, both increased by 20% YoY, reaching Rs 391,729 crore and Rs 423,324 crore, respectively, as of March-end.
The bank’s asset quality improved, with the gross non-performing assets (GNPA) declining to 1.39% in Q4 from 1.78% in the same quarter of the previous financial year. The net non-performing assets (NNPA) stood at 0.34%, compared to 0.37% YoY.
The bank’s average current deposits, savings deposits, and term deposits all grew in Q4 FY24 compared to the same period in the previous year.
Its Return on Assets (ROA) for FY24 was 2.61%, and for Q4, it was 2.97%. The Return on Equity (ROE) for FY24 was 15.34%, and for Q4, it was 17.54%.
The bank’s board also announced a dividend of Rs 2 per share along with the declaration of results.
Lately, shares of Kotak Mahindra Bank have witnessed a decline of nearly 14% in just two weeks, reaching record 52-week low levels, following the Reserve Bank of India’s (RBI) directive preventing the lender to stop onboarding new customers through online and mobile banking channels and issuing fresh credit cards.
Meanwhile, the bank in response to the RBI’s directive, assured investors of its commitment to working with regulators to achieve the required technology standards. The bank plans to step up investments to fortify its IT systems by focusing on accelerating the execution of a comprehensive plan for core banking resilience, demonstrating sustainable compliance with the Baseline Cyber Security Framework for Banks, and strengthening digital payment security controls.
The lender also stated that it will redeploy resources to minimize the business impact and that the RBI action will not materially affect its overall business.
