Kotak Mah Bank

Kotak Mahindra Bank posted a good set of numbers for Q4FY17, very much in line with estimates; though asset quality declined marginally, it did well on the profitability front. It posted a 40% (YoY) rise in net profit at Rs.976 crore and this was on a good increase in income earned. Net Interest Income (NII) was at Rs.2161 crore, up 16% and NIM rose from 4.49% to 4.6% (QoQ).

On the asset quality front, Gross NPA rose to 2.59% from 2.42% (QoQ) and Net NPA too increased to 1.26% from 1.07%. The bank set aside Rs.267 crore for bad loan provisioning, 39% higher than what had been provided for in Q3. The Bank sold no asset during the quarter to ARCs and no account of its went to corporate debt restructuring or 5/25 scheme.  Restructured assets at end of Q4 was at Rs.102 crore, down from 146 crore in Q3.

The Bank’s total advances were up 15% at Rs.1,36,082 crore and deposits grew 12.1%. Savings deposits grew by 41% at RS 41,504 crore. CASA as of March 31, 207 was at 44% v/s 38% (YoY).