Kotak Mahindra Bank Shares Jump 4% As Q2 Advances Rise 24.7%, Deposits Grow 23.2%

Kotak Mahindra Bank shares climbed over 4% in early trade on Tuesday after the private sector lender reported robust growth in advances and deposits for the quarter ended September 30.

The stock was trading 3.52% higher at Rs 431 on the Bombay Stock Exchange at 10.50 am.

The bank's net advances increased 24.7% year-on-year to Rs 5.77 lakh crore as of September 30. Total deposits rose 23.2% from a year earlier and 13.7% quarter-on-quarter to Rs 6.51 lakh crore.

Average advances and deposits record strong growth

Average net advances stood at Rs 5.47 lakh crore during the quarter, representing growth of 22.1% year-on-year and 10.5% sequentially.

Average deposits increased 18.8% year-on-year and 8.5% quarter-on-quarter to Rs 6.06 lakh crore.

Current account savings account (CASA) deposits reached Rs 2.49 lakh crore, rising 11.3% from the year-ago period and 7.8% from the previous quarter.

Average CASA deposits stood at Rs 2.26 lakh crore, an increase of 14.2% year-on-year and 4.4% quarter-on-quarter.

FCNR(B) deposits boost September balances

Kotak Mahindra Bank said its Sept 30 balances included foreign currency non-resident bank, or FCNR(B), deposits worth $5.78 billion, equivalent to approximately Rs 55,344 crore, under the Reserve Bank of India's swap facility.

The bank's international branches held advances worth $1.68 billion, or approximately Rs 16,110 crore, against these deposits.

The lender said the figures for the quarter ended Sept 30 are provisional and subject to a limited review by its statutory auditors.

Kotak Mahindra Bank shares had closed at Rs 416 on Oct 5, down 0.56%. The provisional business update triggered buying interest when trading resumed on Tuesday, pushing the stock nearly 4% higher in early deals.