Kotak Mahindra Bank Q4 consolidated profit up 50%

Kotak Mahindra Bank reported a 50 per cent year-on-year (YOY) jump in consolidated net profit to ~3,892 crore in the January-march quarter (Q4) of FY22, on better margins and robust performance of subsidiaries.

It had posted a consolidated net profit of ~2,589 crore in the same period a year ago. On a full-year basis (FY22), the consolidated net profit was up 21 per cent to ~12,089 crore compared to the previous year.

Uday Kotak, managing director (MD) and chief executive officer (CEO) of the bank, said, consolidated profits are broad-based. He added, “Profits coming from nonbanking entities are very significant. They are not dependent disproportionately only on the bank. About 30 per cent of the consolidated profit comes from subsidiaries.”

On a standalone basis, which represents the banking operations, the lender’s net profit was up 65 per cent YOY to ~2,767 crore in Q4 of FY22, beating Street estimates, as it wrote back Covid-19 provisions amounting to ~453 crore in the quarter. Analysts polled by Bloomberg had estimated a net profit of ~2,147 crore for the bank. In the year-ago period, the lender had earned a net profit of ~1,682 crore. For FY22, standalone net profit was up 23 per cent to ~8,573 crore from ~6,965 crore in FY21.

Net interest income (NII), the difference between interest earned and expended, increased by 18 per cent YOY to ~4,521 crore in Q4 of FY22. Net interest margin, a measure of profitability, stood at 4.78 per cent in Q4, up from 4.39 per cent in the year-ago period.

Fees and services income was up 23 per cent YOY to ~1,697 crore in Q4. Referring to the impact of hike in repo rate, Kotak said, as the RBI action gets factored into deposit rates, Mclr-linked loans will get repriced (rise).

The bank wrote back Covid provisions to the tune of ~453 crore in Q4 of FY22, and ~732 crore for the full year (FY22). The bank had reversed ~279 crore Covid-19 provisions in the December 2021 quarter.