Kotak Mahindra Bank Q4 Results: PAT rose 18% YoY to Rs 4,133 crore, beating expectations.

Private sector lender Kotak Mahindra Bank on Saturday posted standalone profit of Rs 4,133.30 crore for the quarter ended March 2024, up 18.22% year-on-year (YoY), while fourth quarter net interest income (NII) rose 13% YoY to Rs. reported to have increased. 690.9 billion won. The PAT figure was higher than the ET Now poll estimate of Rs 3,406 crore.

During the quarter, Net Interest Margin (NIM) rose to 5.28% from 5.22% in Q3 FY24.

Kotak Bank’s advances rose 20 per cent year-on-year to Rs 391,729 crore as of end-March, while customer assets comprising loans and credit alternatives rose 20 per cent year-on-year to Rs 423,324 crore.

The bank’s GNPA declined from 1.78% in the fourth quarter of last fiscal to 1.39% in the fourth quarter, while its NNPA was 0.37% YoY from 0.34%. As of end-March, loans stood at Rs 391,729 crore, up 20 per cent year-on-year, while customer assets comprising loans and credit alternatives stood at Rs 423,324 crore, up 20 per cent year-on-year.

Average liquid deposits increased to Rs 60,160 crore in the fourth quarter of FY24 compared to Rs 58,415 crore in the fourth quarter of FY23, up 3% year-on-year. Average savings deposits increased 5% year-on-year to Rs 123,457 crore in Q4FY24 compared to Rs 117,824 crore in Q4FY23. Average term deposits increased 35% year-on-year to Rs 224,703 crore in Q4FY24 compared to Rs 166,644 crore in Q4FY23. The bank’s standalone return on assets (ROA) for FY24 was 2.61% and 2.97% for Q4. Return on equity (ROE) was 15.34% in FY24 and 17.54% in Q4. Along with the declaration of results, the bank’s board of directors also announced a dividend of Rs 2 per share. Shares of Kotak Mahindra Bank fell nearly 14 per cent. The RBI’s double trouble and the resignation of joint managing director KVS Manian pushed it to a new 52-week low in just two weeks.

Last week, the RBI directed banks to stop onboarding new customers and issuing new credit cards through online and mobile banking channels.

“We are committed to working with all regulators to achieve the necessary technology standards,” Kotak said in a presentation to investors on Saturday. “We will step up our investments to strengthen our IT systems with a focus on accelerating the implementation of our comprehensive plan.” added. Demonstrate sustainable compliance with the underlying cybersecurity framework for banks and strengthen digital payment security controls for core banking resilience.

The lender said it is looking at ways to redeploy resources to minimize the impact on its business and that the RBI action will not have a material impact on its overall business.