The Board of Directors of Kotak Mahindra Bank (“the Bank”) approved the standalone and consolidated results for Q4FY22 and FY22, at the Board meeting held in Mumbai, today.
Consolidated results at a glance
Consolidated PAT for Q4FY22 was Rs. 3,892 crore, up 50% from Rs. 2,589 crore in Q4FY21 and for FY22 increased to Rs. 12,089 crore from Rs. 9,990 crore in FY21 up 21%.
PAT of Bank and key subsidiaries given below:
|PAT (Rs. crore)||Q4FY22||Q4FY21||FY22||FY21|
|Kotak Mahindra Bank||2,767||1,682||8,573||6,965|
|Kotak Mahindra Prime||313||184||886||535|
|Kotak Asset Management & Trustee Company||102||100||454||346|
|Kotak Mahindra Life Insurance||267||193||425||692|
|Kotak Mahindra Investments||101||73||371||258|
|Kotak Mahindra Capital Company||42||25||245||82|
The Embedded Value (IEV methodology) of Kotak Mahindra Life Insurance as on March 31, 2022 was Rs. 10,679 crore (Rs. 9,869 crore as at March 31, 2021). The Value of New Business (VNB) for FY22 was Rs. 895 crore (Rs. 691 crore for FY21) and the New Business (VNB) Margin for FY22 was 31.1% (28.6% for FY21).
At the consolidated level, the Return on Assets (ROA) was 2.36% for FY22 (2.16% for FY21).
Consolidated Capital adequacy ratio as per Basel III as at March 31, 2022 was 23.7 % and Tier I ratio was 22.8 %.
Consolidated Capital and Reserves & Surplus as at March 31, 2022 was Rs. 97,134 crore (Rs. 84,836 crore as at March 31, 2021). The Book Value per Share was Rs. 487.
Consolidated Customer Assets grew by 22% from Rs. 2,68,130 crore as at March 31, 2021 to Rs. 327,074 crore as at March 31, 2022.
Total assets managed / advised by the Group as at March 31, 2022 were Rs. 382,504 crore up 18% over Rs. 323,762 crore as at March 31, 2021.
The Relationship Value of the customers of Private Banking, Priority Banking and Investment Advisory was ~ Rs. 641,000 crore as at March 31, 2022 up 68% from ~ Rs. 382,000 crore as at March 31, 2021.
Kotak Mahindra Bank standalone results
The Bank’s PAT for Q4FY22 increased to Rs. 2,767 crore, up 65% from Rs. 1,682 crore in Q4FY21 and PAT for FY22 increased to Rs. 8,573 crore from Rs. 6,965 crore in FY21 up 23%.
Net Interest Income (NII) for Q4FY22 increased to Rs. 4,521 crore, from Rs. 3,843 crore in Q4FY21, up 18% and for FY22 increased to Rs. 16,818 crore, from Rs. 15,340 crore in FY21, up 10%. Net Interest Margin (NIM) was 4.78 % for Q4FY22.
Fees and services for Q4FY22 was Rs. 1,697 crore, up 23% YoY.
Operating profit for Q4FY22 was Rs. 3,340 crore (Q4FY21: Rs. 2,962 crore), up 13% YoY.
Net Customer additions in Q4FY22 was 2.0 mn against that of 1.1 mn in Q4FY21. Customers as at March 31, 2022 were 32.7 mn (26.0 mn as at March 31, 2021).
Customer Assets, which includes Advances and Credit substitutes, increased by 23% to Rs. 292,481 crore as at March 31, 2022 from Rs. 2,38,838 crore as at March 31, 2021 (Rs. 274,569 crore as at December 31, 2021). Advances increased by 21% to Rs. 2,71,254 crore as at March 31, 2022 from Rs. 223,670 crore as at March 31, 2021 (Rs. 252,935 crore as at December 31, 2021). Advances grew 7.2% (not annualised) during Q4FY22.
CASA ratio as at March 31, 2022 stood at 60.7%.
Average Current deposits grew to Rs. 49,776 crore for FY22 compared to Rs. 39,481 crore for FY21 up 26%. Average Fixed Rate Savings deposits was Rs. 110,988 crore as at March 31, 2022 up 11% (March 31, 2021 Rs. 99,907 crore). Average TD Sweep up 16% from Rs. 20,074 crore for FY21 to Rs. 23,313 crore for FY22.
As at March 31, 2022, COVID related provisions stood at Rs. 547 crore. In accordance with COVID Resolution Framework announced by RBI, the Bank has standard restructured fund-based outstanding of Rs. 417 crore (0.15% of Advances). Under the MSME Resolution Framework, the Bank has standard restructured fund-based outstanding of Rs. 788 crore (0.29% of Advances) as at March 31, 2022.
As at March 31, 2022, GNPA was 2.34% & NNPA was 0.64%. Credit cost on advances for Q4FY22 was 27 bps (annualised) (excluding reversal of COVID provision). The provision coverage ratio stood at 73.2%. Total provisions (incl specific, standard, COVID-19 related etc.) held as on March 31, 2022 was at Rs. 6,710 cr.
Capital adequacy ratio of the Bank, as per Basel III, as at March 31, 2022 was 22.7% and Tier I ratio was 21.7%.
The Board of Directors of the Bank has recommended dividend of Rs. 1.10 per equity share having face value of Rs. 5, for the year ended March 31, 2022, subject to approval of shareholders.
The financial statements of Indian subsidiaries (excluding insurance companies) and associates are prepared as per Indian Accounting Standards in accordance with the Companies (Indian Accounting Standards) Rules, 2015. The financial statements of subsidiaries located outside India are prepared in accordance with accounting principles generally accepted in their respective countries. However, for the purpose of preparation of the consolidated financial results, the results of subsidiaries and associates are in accordance with Generally Accepted Accounting Principles in India (‘GAAP’) specified under Section 133 and relevant provision of Companies Act, 2013.