Kotak Mahindra Bank: Q2FY14 Rresult Analysis

Kotak Mahindra Bank an Indian commercial bank announced its Q2FY14 results today. The net profit of the bank grew 16.08% to Rs 582.93 crore year on year.  The Net Interest Income (NII) for Q2FY14 increased by 22% year on year to Rs 3,206 crore.

Tha bank reported the EBITA growth of 23.26% to Rs 969.7 crore  in Q2FY14 as compaire to Rs 786.69 crore Q2FY13.Consolidated advances up 11% to Rs 68,226 crore as on September 30, 2013 from Rs 61,255 crore as on September 30, 2012. Withou considering CECV(Commercial Vehicles & Construction Equipment),the growth in advances was 16% YoY.

Non Interest Income decrease by  Rs 702.14 crore showing a year on year decrease  of 48%. The fall  in Non Interest Income (NIM) is driven by Loss on sale of investments,including revaluation in insurance business and Premium on Insurance Business.Gross Non Performing Asset as a proportion of Gross Advances was at 1.63% while Net Non Performing Asset as a proportion of Net Advances was at 0.80% for the quarter ended 30 September, 2013. Total Restructured Advances (excluding NPAs) stand at Rs. 570.67 crore as at September 30.The bank delivered RoA of 2.0% for Q2FY14.

The Total Advances of the bank grew by 11% to Rs. 68226 crore as on September 30, 2013 from Rs 61,255 crore as on September 30, 2012. while deposits rose by 16% to Rs. 51029 crore as on 30 September, 2013. Current and Savings Account (CASA) deposits grew by 25% to Rs. 15393 crore year on year as compared to Rs. 12321 crore in the corresponding quarter of last fiscal.Total assets managed  by the Group as on September 30, 2013 are Rs 60450 crore against Rs 55850 crore in quarter ended September 30, 2012.

View on the results and financial performance as Group offers a wide range of financial services From commercial banking, to stock broking, mutual funds, life insurance and investment banking Bank has delivered a satisfactory quarter of financial performance in a challenging macro-economic environment.