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Kotak Mahindra Bank advances amid volatility after strong Q3 numbers

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Capital Market
Last Updated : Jan 20 2015 | 3:00 PM IST

Kotak Mahindra Bank rose 0.26% to Rs 1,392.65 at 12:25 IST on BSE after net profit rose 36.63% to Rs 464.52 crore on 20.15% growth in total income to Rs 2994.20 crore in Q3 December 2014 over Q3 December 2013.

The Q3 result was announced during market hours today, 20 January 2015.

Meanwhile, the BSE Sensex was up 205.94 points or 0.73% at 28,467.95.

On BSE, so far 1.05 lakh shares were traded in the counter as against average daily volume of 1.21 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 0.83% at the day's high of Rs 1,400.65 so far during the day. The stock fell as much as 0.35% at the day's low of Rs 1,384 so far during the day. The stock had hit a record high of Rs 1,440 on 15 January 2015. The stock had hit a 52-week low of Rs 630.80 on 14 February 2014.

The stock had outperformed the market over the past one month till 19 January 2015, advancing 12.38% compared with Sensex's 3.25% rise. The scrip had also outperformed the market in past one quarter, jumping 38.72% as against Sensex's 8.25% rise.

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The private sector bank has equity capital of Rs 385.86 crore. Face value per share is Rs 5.

Kotak Mahindra Bank's (KMBL) net interest income (NII) rose 16% to Rs 1060 crore in Q3 December 2014 over Q3 December 2013.

The banks' ratio of net non-performing assets (NPAs) to net advances stood at 0.97% as on 31 December 2014, compared with 1% as on 30 September 2014 and 1.1% as on 31 December 2013. The bank's ratio of gross NPAs to gross advances stood at 1.87% as on 31 December 2014, compared with 1.89% as on 30 September 2014 and 2.01% as on 31 December 2013.

Provisions and contingencies declined 57.09% to Rs 29.92 crore in Q3 December 2014 over Q3 December 2013. The bank's provision coverage ratio on NPAs as on 31 December 2014 was at 56.82%.

KMBL's advances rose 22% year-on-year (YoY) to Rs 64641 crore as on 31 December 2014. Savings deposits rose 36% YoY to Rs 12354 crore as on 31 December 2014. Deposits were up 34% YoY at Rs 73066 crore as on 31 December 2014.

The bank's Capital Adequacy Ratio (CAR) including unaudited profits as per Basel III as on 31 December 2014 stood at 17.7% and Tier I ratio was at 16.7%.

On consolidated basis, Kotak Mahindra Bank's net profit rose 21.2% to Rs 716.61 crore on 20.31% growth in total income to Rs 5323.46 crore in Q3 December 2014 over Q3 December 2013.

Net interest margin (NIM) dropped to 4.7% in Q3 December 2014 from 4.9% in Q3 December 2013.

Total assets managed/advised by the Group as on 31 December 2014 were at Rs 71404 crore, up from Rs 59909 crore as on 31 December 2013.

Kotak Mahindra Bank said that the shareholders of the bank and the shareholders of ING Vysya Bank have approved the amalgamation of ING Vysya with Kotak in the ratio of 725 shares of Kotak for every 1,000 shares of ING Vysya. The amalgamation is subject to the approval of the Reserve Bank of India (RBI) under the Banking Regulation Act, the Competition Commission of India and such other regulatory approvals as may be required, Kotak Mahindra Bank said. The amalgamation would be effective from 1 April 2015 or such other date as may be fixed mutually by ING Vysya and Kotak and sanctioned by the RBI, Kotak Mahindra Bank said.

Kotak Mahindra group is one of India's leading financial services conglomerates.

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First Published: Jan 20 2015 | 12:20 PM IST

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