Kotak Mahindra Bank Ltd shares declined 5% on Monday after the lender’s earnings for the third quarter ended December (Q3) missed analyst expectations. At 3:04 pm, the stock was trading down 4.5% at Rs 1,622.55, after hitting an intra-day low of Rs 1,612.
Here are 10 key takeaways from Kotak Mahindra Bank’s Q3 earnings announcement:
1) Kotak Mahindra Bank’s profit grew 23.6% year-on-year to Rs 1,595.9 crore in the December quarter.
2) Net interest income during the quarter grew 7% year-on-year to Rs 3,430 crore.
3) The bank’s net interest margin during the December quarter stood at 4.69% compared with 4.31% in the year-ago quarter and 4.61% in the previous quarter.
4) Kotak Mahindra Bank’s loan growth slipped to 10% year-on-year, mainly due to slowdown in commercial vehicle and construction equipment segment.
5) On the asset quality front, Q3 gross non-performing assets (NPAs) as a percentage of gross advances rose 14 basis points to 2.46% compared with the previous quarter, while net NPA inched up 4 basis points to 0.89%.
6) Consequently, provisions and contingencies for the December quarter rose 8.8% to Rs 444 crore compared with Rs 408 crore in the previous quarter.
7) Current account and savings account (CASA) ratio for Kotak Mahindra Bank improved to 53.7% versus 50.7% in the year-ago quarter.
8) On a consolidated basis, Kotak Mahindra Bank’s profit after tax (PAT) for the December quarter increased 27% to Rs 2,349 crore from Rs 1,844 crore in the year-ago quarter.
9) Consolidated capital adequacy ratio (CAR) of the bank, as per Basel III norms, as on 31 December 2019, is 19.4% and the Tier-I ratio is 19%.
10) The bank highlighted that profit growth in Q3 was hit slightly by higher employee costs. “During this quarter, employee costs include non-recurring charge towards pension obligation of nearly Rs 200 crore mainly due to change in annuity rate, DA, etc,” it said in a filing to BSE.
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