MEDIA RELEASE

KOTAK MAHINDRA BANK ANNOUNCES RESULTS

Kotak Mahindra Bank Consolidated PAT for Q3FY22 ` 3,403 crore, up 31% yoy

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 ` 3,403 crore, up 31% from ` 2,602 crore for Q3FY21 (` 2,989 crore for Q2FY22).

For Q3FY22, net contribution of non-bank entities was 37% of the consolidated PAT.

PAT of Bank and key subsidiaries is given below:

PAT (` 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 at December 31, 2021 was 24.5% and Tier I ratio was 23.7%.

Consolidated Capital and Reserves & Surplus as at December 31, 2021 was ` 93,141 crore (` 82,116 crore as at December 31, 2020). The Book Value per Share was ` 467.

AUM (Policyholders') of Kotak Mahindra Life Insurance as on December 31, 2021 grew 23.8% yoy to ` 49,221 crore.

Consolidated Customer Assets grew by 21% from ` 255,768 crore as at December 31, 2020 to ` 309,042 crore as at December 31, 2021.

Total assets managed / advised by the Group as at December 31, 2021 were ` 386,465 crore up 23% over ` 314,833 crore as at December 31, 2020.

The Relationship Value of the customers of Wealth, Priority Banking and Investment Advisory was ~ ` 649,000 crore as at December 31, 2021 up 73% from ~ ` 375,000 crore as at December 31, 2020.

Kotak Mahindra Bank standalone results

The Bank's PAT for Q3FY22 increased to ` 2,131 crore, up 15% from ` 1,854 crore for Q3FY21 (` 2,032 crore for Q2FY22).

Net Interest Income (NII) for Q3FY22 increased to ` 4,334 crore, from ` 3,876 crore in Q3FY21, up 12%. Net Interest Margin (NIM) for Q3FY22 was at 4.62%.

Net Total Income for Q3FY22 was ` 5,698 crore, up 10% from ` 5,166 crore in Q3FY21. Other Income of Q3FY22 includes MTM gain/(loss) on investments of ₹ (484) cr (Q3FY21: ₹ 5 cr).

Operating profit for Q3FY22 was ` 2,701 crore (Q3FY21: ` 2,908 crore). 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 at December 31, 2021).

Customer Assets, which includes Advances and Credit substitutes, increased by 20% to ` 274,569 crore as at December 31, 2021 from ` 228,791 crore as at December 31, 2020 (` 256,335 crore as at September 30, 2021). Advances increased by 18% to ` 252,935 crore as at December 31, 2021 from ` 214,085 crore as at December 31, 2020 (` 234,947 crore as at September 30, 2021).

CASA ratio as at December 31, 2021 stood at 59.9% compared to 58.9% as at December 31, 2020.

Average Current deposits grew to ` 49,417 crore for 9MFY22 compared to ` 37,533 crore for 9MFY21. Average Savings deposits was ` 119,645 crore for 9MFY22 (9MFY21: ` 107,363 crore). Average TD Sweep up from ` 19,568 crore for 9MFY21 to ` 23,429 crore for 9MFY22.

As at December 31, 2021, COVID related provisions stood at ` 1,000 crore. In accordance with COVID and MSME Resolution Frameworks announced by RBI, the Bank has standard restructured fund-based outstanding of ` 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 on December 31, 2021 was at ` 7,269 cr.

Capital adequacy ratio of the Bank, including unaudited profits, as per Basel III as at December 31, 2021 was 23.3% and 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.

About Kotak Mahindra Group

Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first non-banking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd (KMBL).

Kotak Mahindra Group (Group) offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life and general insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The premise of Kotak Mahindra Group's business model is concentrated India, diversified financial services. The bold vision that underscores the Group's growth is an inclusive one, with a host of products and services designed to address the needs of the unbanked and insufficiently banked.

Kotak Mahindra Group has a global presence through its subsidiaries in UK, USA, Gulf Region, Singapore and Mauritius with offices in London, New York, Dubai, Abu Dhabi, Singapore and Mauritius respectively. As on 31st December, 2021, Kotak Mahindra Bank Ltd has a national footprint of 1,647 branches and 2,609 ATMs, and branches in GIFT City and DIFC (Dubai).

For more information, please visit the Company's website at https://www.kotak.com

For further information, please contact

Biswajit Dash

Sakshi Denis

Rakesh Sharma

Charlotte D'souza

Kotak Mahindra Bank

Kotak Mahindra Bank

Fortuna PR

Fortuna PR

Mobile: +91- 91670 44405

Mobile: +91 70454 74287

Mobile: +91 98335 37679

+91 82912-04270

Biswajit.Dash@kotak.com

Sakshi.Denis@kotak.com

Rakesh@fortunapr.com

Charlotte@fortunapr.com

KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED)

Registered Office: 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051

UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2021

₹ crore

Sr

Quarter ended

Nine months ended

Year ended

Particulars

31-Dec-21

30-Sep-21

31-Dec-20

31-Dec-21

31-Dec-20

31-Mar-21

No

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

1

Interest earned (a+b+c+d)

8,626.36

8,233.09

8,133.58

24,902.27

24,868.06

32,819.83

(a) Interest/discount on

5,804.57

5,380.86

5,251.05

16,500.56

16,472.83

21,620.53

advances/bills

(b) Income on investments

2,411.87

2,450.41

2,410.96

7,257.48

6,894.47

9,274.97

(c) Interest on balances with

276.61

278.66

365.60

757.56

1,178.53

1,480.91

RBI & other interbank funds

(d) Others

133.31

123.16

105.97

386.67

322.23

443.42

2

Other income (a+b+c)

5,549.80

7,108.56

6,537.44

17,186.36

15,703.38

23,476.64

(a) Profit/(Loss) on sale of

investments including

(122.62)

1,413.13

1,827.29

2,191.67

3,906.86

4,536.89

revaluation (insurance

business)

(b) Premium on Insurance

3,235.77

2,981.55

2,712.95

7,907.52

6,427.58

11,367.40

Business

(c) Other income

2,436.65

2,713.88

1,997.20

7,087.17

5,368.94

7,572.35

(Refer Notes 4, 5 & 6)

3

Total income (1+2)

14,176.16

15,341.65

14,671.02

42,088.63

40,571.44

56,296.47

4

Interest expended

2,918.94

2,880.22

3,120.26

8,649.88

10,034.01

12,966.55

5

Operating expenses

6,964.63

8,096.37

7,585.70

21,403.83

18,644.16

27,309.15

(a+b+c)

(a) Employees Cost

1,837.20

1,853.02

1,536.64

5,283.59

4,417.52

5,855.70

(Refer Note 15 and 16)

(b) Policy holders' reserves,

surrender expense and claims

2,828.06

4,257.75

4,345.03

10,148.21

9,877.23

15,037.37

(Refer Note 13)

(c) Other operating expenses

2,299.37

1,985.60

1,704.03

5,972.03

4,349.41

6,416.08

(Refer Note 5 and 7)

Total expenditure (4+5)

6

(excluding provisions and

9,883.57

10,976.59

10,705.96

30,053.71

28,678.17

40,275.70

contingencies)

Operating Profit (3-6)

7

(Profit before provisions and

4,292.59

4,365.06

3,965.06

12,034.92

11,893.27

16,020.77

contingencies)

8

Provisions (other than tax) and

(118.13)

434.18

510.06

1,173.93

2,088.47

2,852.43

contingencies (Refer Note 8)

9

Exceptional items

-

-

-

-

-

-

10

Profit from ordinary

4,410.72

3,930.88

3,455.00

10,860.99

9,804.80

13,168.34

activities before tax (7-8-9)

11

Tax expense

1,073.10

990.17

879.26

2,787.87

2,455.16

3,265.44

Net Profit from ordinary

12

activities after tax before

3,337.62

2,940.71

2,575.74

8,073.12

7,349.64

9,902.90

Minority Interest (10-11)

13

Extraordinary items (net of tax

-

-

-

-

-

-

expense)

14

Net Profit after tax before

3,337.62

2,940.71

2,575.74

8,073.12

7,349.64

9,902.90

Minority Interest (12 -13)

15

Less: Share of Minority

-

-

-

-

-

-

Interest

16

Add: Share in Profit/(Loss) of

65.12

48.03

25.93

124.45

51.24

87.30

associates

17

Profit after tax (14-15+16)

3,402.74

2,988.74

2,601.67

8,197.57

7,400.88

9,990.20

Paid Up Equity Capital

18

(Face value of 5 per

991.95

991.54

990.24

991.95

990.24

990.92

share)

Group Reserves (excluding

19

Minority Interest and

83,345.53

Revaluation reserves)

₹ crore

Sr

Quarter ended

Nine months ended

Year ended

Particulars

31-Dec-21

30-Sep-21

31-Dec-20

31-Dec-21

31-Dec-20

31-Mar-21

No

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

20

Minority Interest

-

21

Analytical Ratios

(i) Capital Adequacy ratio -

21.29

21.76

21.54

21.29

21.54

22.26

Basel III (standalone)

(ii) Earnings per equity share

- Basic (not annualised)

17.16

15.07

13.14

41.34

37.66

50.53

- Diluted (not annualised)

17.15

15.06

13.14

41.32

37.64

50.49

(iii) NPA Ratios (unaudited)

(a) Gross NPA

7,993.34

8,564.19

5,510.55

7,993.34

5,510.55

8,276.29

(b) Net NPA

2,496.75

2,897.01

1,284.58

2,496.75

1,284.58

3,105.50

(c) % of Gross NPA to

2.75

3.16

2.25

2.75

2.25

3.22

Gross Advances

(Refer Note 11)

(Refer Note 11)

(d) % of Net NPA to Net

0.87

1.09

0.53

0.87

0.53

1.23

Advances

(Refer Note 11)

(Refer Note 11)

(iv) Return on average Assets

0.65

0.60

0.56

1.63

1.61

2.16

(not annualised)

NOTES:

  1. The consolidated financial results are prepared in accordance with Accounting Standard - 21 (AS-21) "Consolidated Financial Statements" and Accounting Standard - 23 (AS-23) "Accounting for investment in associates in Consolidated Financial
    Statements" specified under section 133 and relevant provisions of Companies Act, 2013.
  2. 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.
  3. The consolidated financial results for the quarter and nine months ended 31st December, 2021 were reviewed by the Audit Committee and approved at the meeting of the Board of Directors held on 28th January, 2022. These results were subjected to limited review by the joint statutory auditors (Walker Chandiok & Co LLP, Chartered Accountants and Price Waterhouse LLP, Chartered Accountants) of the Bank and there are no modifications in their Limited Review Report. The results for the quarter and nine months ended 31st December, 2020 were reviewed and for the year ended 31st March, 2021 were audited by Walker Chandiok & Co LLP, Chartered Accountants.
  4. Details of other income forming part of the consolidated results are as follows:
    • crore

Quarter ended

Nine months ended

Year ended

Particulars

31-Dec-21

30-Sep-21

31-Dec-20

31-Dec-21

31-Dec-20

31-Mar-21

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Commission, fees, exchange,

2,722.70

2,470.91

1,843.93

7,294.28

4,868.93

7,341.78

brokerage and others (net)

Profit/(Loss) on sale and

provisions/(write-back) of

mark-to-market depreciation on

(286.05)

242.97

153.27

(207.11)

500.01

230.57

investments (other than

insurance business)

Total - Other income

2,436.65

2,713.88

1,997.20

7,087.17

5,368.94

7,572.35

  1. Other income in the consolidated results for the reporting periods is net of sub-brokerage paid in the broking subsidiary amounting to 41.44 crore for the quarter and 115.34 crore for the nine months ended 31st December, 2021 ( 38.93 crore for the quarter ended 30th September, 2021, for the quarter and nine months ended 31st December, 2020, 26.02 crore and 75.17 crore respectively and 111.04 crore for the year ended 31st March, 2021).
  2. Other income includes non-fund based income such as commission earned from guarantees / letters of credit, financial advisory fees, selling of third party products, earnings from foreign exchange transactions, profit / loss from the sale of securities and provision / (write-back) of mark-to-market depreciation on investments.

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Kotak Mahindra Bank Limited published this content on 28 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2022 08:55:25 UTC.