Private lender Kotak Mahindra Bank reported a massive surge in its net profit for the fourth quarter.

What Happened: Kotak Mahindra Bank reported a net profit of ₹4,133 crore for the January-March quarter of the financial year 2023-24, marking an 18% increase from ₹3,496 crore reported in the corresponding quarter of the previous year. The figure beat analyst estimates of ₹3,283 crore.

The bank’s net interest income rose by 13% year-on-year to ₹6,909 crore, compared with ₹6,103 crore last year and slightly higher than street expectations of ₹6,690 crore. The net interest margin (NIM) stood at 5.28% for Q4FY24.

The firm also recommended a dividend of ₹2 per equity share.

Other Key Metrics: In terms of asset quality, the gross non-performing assets (GNPA) of the bank decreased to 1.39% from 1.78% last year, while the net non-performing assets (NNPA) decreased to 0.34% from 0.37% last year.

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The bank’s advances increased by 20% year-on-year to ₹3.91 lakh crore compared to ₹3.25 lakh crore last year. Average current deposits grew to ₹60,160 crore for Q4FY24, up from ₹58,415 crore for Q4FY23, and average savings deposits grew to ₹1.23 lakh crore compared to ₹1.17 lakh crore.

The bank’s CASA ratio as at March 31 stood at 45.5%.

Kotak shares have faced pressure following a Reserve Bank of India (RBI) ban disallowing the private bank from adding new customers through its online and mobile banking channels and from issuing new credit cards.

This was further compounded by the high-profile resignation of KVS Manian, who had recently been promoted to joint managing director at Kotak.

Price Action: Kotak’s stock has plummeted nearly over 11% in the last month and settled 1.6% lower at ₹1,550.30 on Friday.

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