Kotak Mahindra Bank Q4 profit falls 10% at Rs 1,267 crore

Private sector lender Kotak Mahindra Bank on Wednesday reported a standalone profit after tax of Rs 1,267 crore in the January to March quarter (Q4 FY20), down 10 per cent from Rs 1,408 crore in the corresponding period of previous fiscal.

In the October to December quarter (Q3 FY20), it had posted a profit of Rs 1,596 crore. For the entire fiscal 2019-20, profit after tax totalled Rs 5,947 crore compared to Rs 4,865 crore in FY19.

Net interest income for FY20 increased to Rs 13,500 crore from Rs 11,206 crore in FY19, and for Q4 FY20 increased to Rs 3,560 crore from Rs 3,036 crore in Q4 FY19. Net interest margin for Q4 FY20 was at 4.72 per cent.

Advances as on March 31 this year were up 7 per cent to Rs 2.19 lakh crore as compared to Rs 205 lakh crore as on March 31, 2019, the bank said in a statement.

The bank has made a COVID-19 related general provision of Rs 650 crore which is higher than the Reserve Bank of India's requirement. Total provisioning towards advances (including specific, standard and COVID provisions) is higher than the gross non-performing assets (GNPAs) of the bank.

In accordance with April 17 circular of RBI, the Board of Directors has not recommended any dividend for FY20.

Current account savings account (CASA) ratio as on March 31 stood at 56.2 per cent compared to 52.5 per cent last year. Average savings deposits grew by 21 per cent to Rs 85,656 crore for FY20 compared to Rs 70,990 crore for FY19.

Average current account deposits grew by 17 per cent to Rs 33,699 crore for FY20 compared to Rs 28,742 crore for FY19. Term deposit sweeps were 6.6 per cent of the total deposits.

The relationship value of all the customers of wealth, priority banking and investment advisory totalled Rs 2.7 lakh crore as on March 31, 2020.

Capital adequacy ratio as per Basel III was 17.9 per cent and the tier-one ratio was 17.3 per cent. As on March 31, GNPA was 2.25 per cent and NNPA was 0.71 per cent. As on March 31, SMA2 outstanding was Rs 96 crore (0.04 per cent of net advances).

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