Kotak Mahindra Bank branch in Modern Delhi. File | Photo source: REUTERS
Kotak Mahindra Bank’s (KMB) fourth quarter net profit increased by 18% ₹ 4,133 crore from ₹ 3,496 crore in the previous year, accompanied by a 13% year-on-year raise in net interest income (NII) to ₹ 6,909 crore in the quarter ended March 31, 2024
Recoveries and improvements in the fourth quarter were ₹772 crore and the bank wrote off unsecured retail loans of ₹1,455 crore. The total advance provisions were ₹5,903 crore. The bank said in a presentation to investors.
In FY24, KMB’s standalone net profit increased by 26% to Rs 13,782 crore compared to the previous year.
NII in FY24 increased to ₹25,993 crore from ₹21,552 crore in FY23, up 21% year-on-year.
The board has recommended a dividend of ₹2 per share with a face value of ₹5 for FY24.
KMB in its filing said operating expenses increased to ₹ 16,679 crore in FY24 (₹ 13,787 crore in FY23).
Higher technology spending
Technology spend was 10% of operating expenses in FY24 and KMB is planning more investments in view of the April 24 RBI directive to stop onboarding novel online customers, credit card issuance and mobile banking channels.
“We are fully committed to working with all of our regulators to achieve the required technology standards,” the bank said in a presentation to investors.
It said the bank would raise investment to strengthen its IT systems and accelerate implementation of a comprehensive plan to improve the resilience of core banking. It also pledged to further strengthen security controls on digital payments.
Operating profit
Operating profit for FY24 increased to ₹19,587 crore, up 32% year-on-year, and for Q4FY24 increased to ₹5,462 crore, up 18% year-on-year.
As of March 31, 2024, the bank said its advances grew by 20% year-on-year to ₹3,91,729 crore.
As of March 31, 2024, GNPA was 1.39% and NNPA was 0.34% (GNPA was 1.78% and NNPA was 0.37% as of March 31, 2023).
Consolidated profit after tax for FY24 increased to ₹18,213 crore from ₹14,925 crore in FY23, up 22% year-on-year. Consolidated PAT for Q4FY24 was ₹5,337 crore, up 17% year-on-year.
