Kotak Mahindra Bank Q4 Earnings: Profits soared 17%, Rs 1.5 per share dividend declared

Leading private lender Kotak Mahindra Bank recently reported its results for the Jan - Mar ‘23 period. In the March quarter the lender reported a 17% yearly rise in net profits. Moreover, its net interest income also witnessed an improvement from the previous year.

Coming to the Kotak Mahindra Bank share price, it has been on an upward trend in recent times. In 2023 so far, the Kotak Mahindra Bank share price has increased by close to 6% while over the past year it is up 8.9%. 

So, how did the lending major perform in terms of other key metrics like advances, deposits, net interest margins, etc? How will this affect the Kotak Mahindra Bank share price? Let’s try and decode!

Decoding Kotak Mahindra Bank Q4 Earnings

Kotak Mahindra Bank total income:

• Total income for the Jan - Mar ‘23 period came in at Rs 20,730.9 crores, up 24.3% from the previous year. 
   
• The majority of the total income was made up of Interest income as it came in at Rs 11,981.6 crores which made up about 57.8% of the total income. Moreover, the interest income witnessed a yearly rise of 35.6%.
   
• Other income for the March quarter stood at Rs 8,749.2 crores (about 42.2% of the total income). This denotes a growth of 11.6% from the prior year.

Kotak Mahindra Bank net interest income: Kotak Mahindra Bank reported a net interest income of Rs 6,103 crores for the Jan - Mar ‘23 period, up 35% from the previous year.

Kotak Mahindra Bank advances:

• Net advances at the end of the March quarter came in at Rs 3,19,861 crores. This denotes a growth of 18% from the prior year.
   
• Among advances, Home Loans cornered the majority (29%) share of the loan book at Rs 92,731 crores, up 22% from the prior year. 
   
• Corporate Banking also formed a substantial chunk of the loans disbursed at Rs 70,384 crores, up 1% from the previous year. This formed about 22% of the loan book.
   
• However, the segment which witnessed the highest yearly growth in advances was Retail Micro Finance. The segment’s advances at the end of the March quarter stood at Rs 6,225 crores, up a staggering 103% from the previous year.

Kotak Mahindra Bank deposits:

• Deposits at the end of the Jan - Mar ‘23 period stood at Rs 3,63,096 crores, up 16.5% from the previous year.
   
• Term Deposits at Rs 1,71,281 crores formed the majority of the total deposits at 47.2%. It also witnessed a yearly rise of 39.7%.
   
• The critical CASA deposits also witnessed an increase from the previous year, although marginal. The figure at the end of the Jan - Mar ‘23 period stood at Rs 1,91,815 crores, up 1.4% from the prior year.

Kotak Mahindra Bank net interest margin: The bank’s net interest margin for the Jan - Mar '23 period came in at 5.75%, up 0.97% from the previous year.

Kotak Mahindra Bank GNPA: The Gross Non-Performing Assets % (GNPA%) at the end of the March quarter stood at 1.78%. This marks an improvement from the previous year’s figure of 2.34%.

Similarly, the Net NPA % also improved to 0.37% from 0.64% in the prior year.

Kotak Mahindra Bank net profits: Kotak Mahindra reported a net profit of Rs 4,566 crores for the Jan - Mar ‘23 period. This denotes a growth of 17.3% from the previous year.

Kotak Mahindra Bank dividend: The lender’s board declared a dividend of Rs 1.5 per share.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.