Yahoo Finance

• Consolidated Profit: INR4,700 crores, 10% YoY growth.

• Consolidated Net Worth: INR152,000 crores.

• Book Value per Share: INR769, 23% YoY growth.

• Consolidated Customer Assets: INR519,000 crores, 15% YoY growth.

• Capital Adequacy Ratio: 23.4%, CET-1 at 22.5%.

• Return on Equity (ROE): 12.43%.

• Return on Assets (ROA): 2.30%.

• Standalone Bank PAT: INR3,300 crores, 10% YoY growth.

• Standalone Capital Adequacy: 22.8%, CET1 at 21.7%.

• Standalone ROA: 2.1%.

• Customer Assets Growth: 15% YoY.

• CASA Ratio: 42.3%.

• Net Interest Margin (NIM): 4.93%.

• Gross NPA: 1.5%.

• Net NPA: 0.41%.

• Provision Coverage Ratio: Improved to 7%.

• Kotak Securities Profit: INR448 crores, 46% YoY growth.

• Kotak AMC Profit: INR240 crores, 65% YoY growth.

• Total AUM of Kotak AMC: Crossed INR500,000 crores.

• Kotak Prime Asset Base: INR38,000 crores, 16% YoY growth.

• Kotak Life PAT: INR164 crores, 17% YoY growth.

• Solvency Ratio for Kotak Life: 2.56x.

• Warning! GuruFocus has detected 2 Warning Sign with BOM:500247.

Release Date: January 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kotak Mahindra Bank Ltd (BOM:500247) reported a consolidated profit of INR4,700 crores, marking a 10% year-over-year increase.

• The bank's capital adequacy remains strong at 23.4%, with a CET-1 ratio of 22.5%.

• Advances grew by 15% and group deposits by 16%, showcasing robust growth in core banking operations.

• The bank's investment banking and securities subsidiaries performed exceptionally well, with Kotak Mahindra Capital ranking number one in equity capital markets for the third consecutive year.

• Kotak Mahindra Bank Ltd (BOM:500247) maintained a stable NIM of 4.93%, benefiting from lower SAAR and higher CAR balances.

Negative Points

• The bank is facing a credit strain in its microfinance portfolio, with increasing delinquencies in select states.

• There is a slowdown in unsecured retail mix, with a decrease in microcredit and credit card growth due to an embargo.

• The macroeconomic environment is volatile, with evidence of a slowdown in the economy, impacting growth prospects.

• Kotak Prime, the car finance business, experienced a profit drop due to margin pressure and higher delinquencies in the two-wheeler segment.

• The bank's fee income growth has moderated, impacted by regulatory changes and a slowdown in credit card income.

Q & A Highlights

Q: Can you provide an update on the RBI restrictions and the progress made? A: Ashok Vaswani, CEO, stated that the bank is in constant communication with the RBI, providing regular updates and receiving guidance. Most of the required work and submissions have been completed, but it's hard to predict when the restrictions will be lifted.