Mumbai: The Board of Directors of Kotak Mahindra Bank (“the Bank”) approved the audited standalone and consolidated results for Q4FY21 and FY21, at the Board meeting held in Mumbai, today.
Kotak Mahindra Bank standalone results
The Bank’s PAT for Q4FY21 increased to Rs. 1,682 crore from Rs. 1,267 crore in Q4FY20, up 33% and for FY21 increased to Rs. 6,965 crore from Rs. 5,947 crore in FY20 up 17%.
Net Interest Income (NII) for Q4FY21 increased to Rs. 3,843 crore, from Rs. 3,560 crore in Q4FY20, up 8% and for FY21 increased to Rs. 15,340 crore, from Rs. 13,500 crore in FY20, up 14%. Net Interest Margin (NIM) for Q4FY21 was at 4.39%.
Operating profit for Q4FY21 was Rs. 3,407 crore, up 25% from Rs. 2,725 crore in Q4FY20 and for FY21 was Rs. 12,215 crore, up 22% from Rs. 10,021 crore in FY20.
CASA ratio as at March 31, 2021 stood at 60.4% compared to 56.2% as at March 31, 2020.
Average Savings deposits grew by 27% to Rs. 108,812 crore for FY21 compared to Rs. 85,656 crore for FY20. Average Current Account deposits grew by 17% to Rs. 39,481 crore for FY21 compared to Rs. 33,699 crore for FY20.
CASA and TDs below Rs. 5 crore as at March 31, 2021, constituted 91% of total deposits (86% as at March 31, 2020). TD Sweep deposits as at March 31, 2021 were 7.5% of total deposits (6.6% as at March 31, 2020).
Advances as at March 31, 2021 were Rs. 223,689 crore up 4.5% from Rs. 214,103 crore as at December 31, 2020 (Rs. 219,748 crore as at March 31, 2020). Customer Assets, which includes Advances and Credit substitutes, were Rs. 238,857 crore as at March 31, 2021 up 4.4% from Rs. 228,809 crore as at December 31, 2020 (Rs. 228,970 crore as at March 31, 2020).
COVID related provisions as at March 31, 2021 stood at Rs. 1,279 crore. In accordance with the Resolution Framework for COVID-19 and MSME announced by RBI, as at March 31, 2021, the Bank has implemented, for certain eligible borrowers, restructuring of Rs. 435 crore (0.19% of net advances).
As at March 31, 2021, GNPA was 3.25% & NNPA was 1.21%. As on March 31, 2021, SMA2 outstanding was Rs. 110 cr (0.05% of net advances). Credit cost, excluding COVID-19 contingency provisioning, for FY21 was 84 bps of net advances (67 bps for FY20).
Capital adequacy ratio of the Bank as per Basel III, as at March 31, 2021 was 22.3% and Tier I ratio was 21.4%.
The Board of Directors of the Bank has recommended dividend of Rs. 0.90 per equity share having face value of Rs. 5, for the year ended March 31, 2021, subject to approval of shareholders.
Consolidated results at a glance
Consolidated PAT for FY21 increased to Rs. 9,990 crore from Rs. 8,593 crore in FY20 up 16% and for Q4FY21 increased to Rs. 2,589 crore from Rs. 1,905 crore in Q4FY20 up 36%.
For FY21, the Bank’s contribution to the consolidated PAT was Rs. 6,965 crore. Net contribution of the subsidiaries & associates was 30% of the consolidated PAT.
The contribution of key subsidiaries is given below:
|Subsidiaries PAT (Rs. crore)||FY21||FY20|
|Kotak Mahindra Life Insurance||692||608|
|Kotak Mahindra Prime||535||673|
|Kotak Asset Management & Trustee Company||346||337|
|Kotak Mahindra Investments||258||270|
The Embedded Value (IEV methodology) of Kotak Mahindra Life Insurance as on March 31, 2021 was Rs. 9,869 crore. The Value of New Business (VNB) for FY21 was Rs. 691 crore and the New Business (VNB) Margin for FY21 was 28.6%. The 13th month persistency as on February 2021 (on 12 month rolling premium basis) was 88.8%.
AUM (Policyholders’) of Kotak Mahindra Life Insurance as at March 31, 2021 grew 34% YoY to Rs. 43,042 crore.
The Relationship Value of the customers of Wealth, Priority Banking and Investment Advisory was ~ Rs. 382,000 crore as at March 31, 2021 up 41% from ~ Rs. 270,000 crore as at March 31, 2020.
Consolidated Capital and Reserves & Surplus as at March 31, 2021 was Rs. 84,836 crore (Rs. 67,134 crore as at March 31, 2020). The Book Value per Share was Rs. 426.
Consolidated Customer Assets, including Advances and Credit Substitutes, were Rs. 268,149 crore as at March 31, 2021 up 4.8% from Rs. 255,786 crore as at December 31, 2020 (Rs. 260,583 crore as at March 31, 2020).
Total assets managed / advised by the Group as at March 31, 2021 were Rs. 323,762 crore up 43% over Rs. 225,878 crore as at March 31, 2020.
The financial results of the subsidiaries and associates used for preparation of the consolidated financial results are in accordance with Generally Accepted Accounting Principles in India (‘GAAP’) specified under Section 133 and relevant provision of Companies Act, 2013. 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.