Kotak Mahindra Bank (KMB) Q4 net profit rose 18%₹4,133 crore, from ₹3,496 crore in the year earlier period backed by 13% Year-on-Year (YoY) growth in Net Interest Income (NII) to₹6,909 crore during the quarter ended March 31, 2024.
Recoveries and upgrades during Q4 was ₹772 crore and the bank wrote off retail unsecured loans of ₹1,455 crore. Its total provisions towards advances stood at ₹5,903 crore. The bank said in an investors’ presentation.
For FY24 KMB’s standalone net profit grew 26% to₹13,782 crore over the previous year.
FY24 NII rose to ₹25,993 crore, from ₹21,552 crore in FY23, up 21% YoY.
The Board has recommended dividend of ₹2 per equity share having a face value of ₹5, for FY24.
KMB in a filing said operating costs rose to ₹16,679 crore in FY24 (₹13,787 crore in FY23).
Higher tech spends
Technology expenses were 10% of operating cost in FY24 and KMB has plans to invest more following RBI’s April 24 directive to stop onboarding new online customers, issuing credit cards and mobile banking channels.
“We are totally committed to work with all our regulators to achieve the required technology standards,” the bank said in the investors’ presentation.
It said the bank will step up investment to fortify its IT systems, and accelerate execution of the comprehensive plan for core banking resilience. It has also committed to continue to strengthen its digital payment security controls.
Operating Profit
Operating profit for FY24 increased to ₹19,587 crore, up 32% YoY and for Q4 FY24, it rose to ₹5,462 crore, up 18% YoY.
As at March 31, 2024 the bank said its advances increased 20% YoY to ₹ 391,729 crore.
As at March 31, 2024, GNPA was 1.39% & NNPA was 0.34% (GNPA was 1.78% & NNPA was 0.37% at March 31, 2023).
Consolidated profit after tax for FY24 increased to ₹ 18,213 crore from ₹ 14,925 crore in FY23, up 22% YoY. For Q4 FY24 consolidated PAT was ₹ 5,337 crore, up 17% YoY, it said.
