The Board of Directors of Kotak Mahindra Bank (‘Kotak Bank’) took on record the unaudited standalone and consolidated results for Q3FY20, at the Board meeting held in Mumbai, today.
Bank’s PAT for Q3FY20 increased to Rs.1,596 cr from Rs.1,291 cr in Q3FY19 up 24%. During this quarter, employee cost includes non-recurring charge towards pension obligation of ~ Rs.200 cr mainly due to change in annuity rate, DA, etc.
Net Interest Income (NII) for Q3FY20 increased to Rs.3,430 cr from Rs.2,926 cr in Q3FY19, up by 17%. Net Interest Margin (NIM) for Q3FY20 at 4.69% up from 4.31% in Q3FY19.
CASA ratio as on December 31, 2019 stood at 53.7% compared to 50.7% as on December 31, 2018. TD Sweep deposits as on December 31, 2019 were 7.4% of the total deposits. Cost of SA for Q3FY20 was 5.27%.
Average Savings deposits grew by 20% to Rs.83,049 cr for 9MFY20 compared to Rs.69,256 cr for 9MFY19. Average Current Account deposits grew by 19% to Rs.33,258 cr for 9MFY20 compared to Rs.28,026 cr for 9MFY19.
Advances as on December 31, 2019 were up 10% to Rs.216,774 cr (`196,432 cr as on December 31, 2018)
Capital adequacy ratio of the Bank, as per Basel III, as on December 31, 2019 is 18.2% and Tier I ratio is 17.7%.
As on December 31, 2019, the Bank had a network of 1,539 full-fledged branches in India, branches in GIFT City and DIFC (Dubai) and 2,447 ATMs affording it the capacity and means to serve its customers through its wide presence.
As on December 31, 2019, GNPA was 2.46% & NNPA was 0.89%. As on December 31, 2019, SMA2 outstanding was Rs.274 cr (0.13% of net advances).
Consolidated results at a glance
Consolidated PAT for Q3FY20 increased to Rs.2,349 cr from Rs.1,844 cr in Q3FY19 up 27%.
For Q3FY20, the Bank’s contribution to the PAT was Rs.1,596 cr. The subsidiaries & associates net contribution was 32% of the consolidated PAT.
The contribution of key subsidiaries is given below:
| Subsidiaries | (Rs.cr) |
| Kotak Mahindra Prime | 187 |
| Kotak Mahindra Investments | 64 |
| Kotak Securities | 128 |
| Kotak Mahindra Life Insurance | 166 |
| Kotak AMC & TC | 91 |
| Kotak Mahindra Capital | 40 |
Consolidated Capital & Reserves and Surplus as on December 31, 2019 was Rs.65,018 cr (Rs.56,186 cr as on December 31, 2019).
Consolidated Advances were Rs.250,172 cr as on December 31, 2019.
Total assets managed / advised by the Group as on December 31, 2019 were up 29% at Rs.263,006cr (Rs.203,222 cr as on December 31, 2018).
The Relationship Value of all the customers of Wealth and Priority Banking Offering ~ Rs.306,000 cr as on December 31, 2019 up from ~ Rs.260,000 cr as on December 31, 2018.
The market share of Kotak Securities in the cash segment was 9.2% for 9MFY20 (8.8% in 9MFY19).
Digital Update
Post change in regulation, we restarted sourcing 811 OTP account basis Voluntary use of Aadhaar by the customer and we are back at the monthly acquisition numbers as was done prior. The customer can do the full KYC of these OTP account using Biometric.
Digital remains an area of focus for the Group. We launched India’s first AI-powered voicebot in the banking sector by the name of ‘Keya’. Bank and other subsidiaries like Securities, Insurance, Mutual Fund and Kotak Prime are gaining significant traction and market share. During Q3FY20, the share of Recurring Deposits sourced digitally was 92% and that of Term Deposits was 76%. With the implementation of Open Banking, it has enabled 60 API relationships. There were ~2.4mn monthly unique users for Keya chatbot as on December 31, 2019.
Kotak Securities mobile transaction total ADVs grew 126% YoY in Q3FY20. 95% of the individual policies written by Kotak Life Insurance were sourced through Genie – tablet based end to end sales solution. Further, 95% of the Banca channel sales in Q3FY20 were through Genie. In the case of Kotak General Insurance, its digital channels grew 86% compared to last quarter.
