kotak-result-analysis-Q3FY21

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Particulars (In Rs. Cr.) Q3FY21 Q2FY21 Q3FY20 QoQ % YoY%
Interest Earned 6,790.54 6,836.05 6,735.60 -0.67 0.82
Other Income 1,334.38 1,452.03 1,341.43 -8.10 -0.53
Total Income 8,124.92 8,288.08 8,077.03 -1.97 0.59
Interest Expense 2,783.72 2,922.84 3,306.07 -4.76 -15.80
Net Interest Income 4,006.82 3,913.21 3,429.53 2.39 16.83
Operating profit 3,083.34 3,897.49 2,388.07 -20.89 29.11
Profit After Tax 1,853.54 2,184.48 1,595.90 -15.15 16.14
Provision 599.03 368.59 444 62.52 34.92
GNPA (%) 2.26 2.55 2.46 -11.37 -8.13
NNPA (%) 0.5 0.64 0.89 -21.88 -43.82
Capital Adequacy Ratio (%) 21.54 22.05 18.21 -2.31 18.29
CASA Ratio (%) 58.9 57.1 53.7 3.15 9.68
Segment Revenue Q3FY21 Q2FY21 Q3FY20 QoQ % YoY%
Corporate/Wholesale Banking 3,230.95 3,229.74 3,458.25 0.04 -6.57
Retail Banking 3,577.44 3,566.08 3,835.43 0.32 -6.73
Treasury, BMU and Corporate Centre 2,350.09 2,516.01 1,699.73 -6.59 38.26
Inter-Segmental Revenue(Part of Segment Revenue) 1,033.56 1,023.75 916.38 0.96 12.79

 

Result Highlight:

  • Interest earned slightly down by 0.67% Q-o-Q. However it is slightly up by 0.82% Y-o-Y.
  • Interest Expenses reduced to Rs.2783.72 down by 4.76% Q-o-Q
  • Net Interest Income expanded by 2.39% Q-o-Q vs 16.83% Y-o-Y.
  • Net profit After Tax stood at Rs.1853.54 crore vs Rs.2184.48 in the previous Quarter. Which shows the -15.15%  decrease in Net profit.
  • Capital Adequacy Ratio down to 21.54% as against 22.05% in the previous Quarter.
  • CASA ratio slightly improved to 58.9% as compared to 57.1% in the last Quarter.
  • Bank Holds Provisions as at 31st December 2020, stood at Rs.599.03 Crore improved by 62.52%
  • Operating profit shows improvement of 29.11% Y-o-Y while it’s down by 20.89% in Q3FY21.
  • Reduction in Net NPA by 21.88% Q-o-Q to 0.5% as it was 0.64% in the previous quarter.
  • Performa GNPA and NNPA stood at 3.27% and 1.24% as on 31st December 2020

 

Subsidaries:

Kotak Mahindra Life insurance

AUM(Policy holders) as on 31st Dec,20 Rs.39770 crore grew 21.7% Y-o-Y.Overall protection share for Q3 grew 4.8%  Y-o-Y and 25.5% Q-o-Q.Individual renewal premium  Q3 grew 21.9% Y-o-Y.

Kotak Securities

The company holds 2% of the Market’s ADV in Q3FY21. Market Share in Cash Segment for 9MonthsFY21: 9.1% as against 10% in 9MonthsFY20.

Kotak Mahindra Capital Company

Company is one of several book leaders in Recent IPOs like Burger king India,Gland Pharma Limited and has reported the PAT of Rs.38 crore for Q3FY21 down by 5% Y-o-Y.

Kotak Mahindra Prime

NII rises to Rs 320 crore in Q3FY21 vs 313 Crore in Q3FY20.NNPA rises to 0.9% in Q3 FY21 as against 0.6% in Q3FY20

Kotak Mahindra AMC & Trustee Co.-

AAUM crossed ` 2 lac crore in Q3FY21, Overall Market share on AAUM increased to 7.3% in Q3FY21 (Q3FY20: 6.6%). Equity AAUM market share increased to 5.0% in Q3FY21 (Q3FY20: 4.8%).

 

Outlook:

Kotak Mahindra Bank Beat the street estimates. Banks Total Advances rose 4.5% Q-o-Q  but contracted by 1.23% over a year earlier and Total Deposits rose to 10.84% Y-o-Y. Banks asset quality improves, on the other hand  significant provisions has been accounted in Q3FY21. Proforma GNPA and NNPA stood at 3.27% and 1.24% as on 31st December2020 and Cost of Saving Accounts stood at 3.81% for Q3FY21 as against 5.27% as on Q3FY20. Banks largest customer Corporate Banking accounts 22% followed by Home Loans & LAP at 22%.  As covid-19 Outbreak switched the consumer to Digital platform from traditional banking provides more cushion to Banks on acquiring customers as Mobile Banking through Digital channels contributing ease on acquiring customers as 97% of the RDs opened and 84% of the FDs booked through Digital channels. 2.1X growth of consumer digital payment volumes in Q3FY21 over Q3FY20 and  1.43X growth in registered merchants  and 11X growth in acquiring transactions in Q3FY21 over Q3FY20.

DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


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