Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2024 Earnings Presentation
30 slides from Kotak Mahindra Bank's earnings presentation, Jan 20, 2024
Slide 1: Exchange cover letter for Investor Presentation
January 20, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 001 Mumbai 400 051 BSE Scrip 500247, 715026, 958687, NSE KOTAKBANK,
Slide 2: Q3FY24 Presentation on financial results
Q3FY24 Presentation on financial results for the period ended 31st December, 2023 20th January, 2024
Slide 3: Key Updates for Q3FY24
Key Updates for Q3FY24 Bank ✓ PAT Q3FY24: 8% (YoY); 9MFY24: 30% (YoY) ✓ NIM at 5.22% same as Q2FY24 ✓ Overall Credit cost at 40 bps; NNPA: 0.34% ✓ CASA Ratio: 47.7%, Deposits challenge ✓ Trading and MTM loss Q3FY24: ₹ 168 cr ✓ Provision on AIF investments of ₹ 190 cr Subsidiaries ✓ Kotak Securities
Slide 4: Consolidated Highlights Q3FY24
Consolidated Highlights Q3FY24 PAT ROA ROE ₹ 4,265 cr 2.46% 13.83% ₹ 3,995 cr 2.76% 15.04% Customer Assets^ CAR# CET I# Book Value / Share ₹ 451,524 cr 22.2% 21.2% ₹ 627 ₹ 379,820 cr 23.2% 22.3% ₹ 540 Q3FY24 results include ₹143 cr provision (post tax) on applicable Alternate Investment Fund (AIF) i
Slide 5: Consolidated PAT
Consolidated PAT ₹ cr Q3FY24 Q3FY23 Q2FY24 9MFY24 9MFY23 FY23 Bank & Subsidiaries Contribution Kotak Mahindra Bank 3,005 2,792 3,191 9,648 7,444 10,939 Kotak Mahindra Prime 239 225 208 666 604 829 Kotak Mahindra Investments 157 86 126 386 227 326 72% BSS Microfinance 104 82 108 307 208 297 Kotak Sec
Slide 6: Entity-wise Capital and Reserves & Surplus
Entity-wise Capital and Reserves & Surplus ₹ cr 31-Dec-23 31-Dec-22 30-Sep-23 Bank & Subsidiaries Contribution Kotak Mahindra Bank 92,994 79,936 89,956 Bank Kotak Mahindra Prime 8,954 8,081 8,715 Kotak Mahindra Investments 3,200 2,715 3,043 73% Other Lending Related Entities BSS Microfinance 934 537
Slide 7: Standalone Highlights Q3FY24
Standalone Highlights Q3FY24 PAT NII NIM ROA ₹ 3,005 cr ₹ 6,554 cr 5.22% 2.20% ₹ 2,792 cr ₹ 5,653 cr 5.47% 2.46% Customer Assets^ Net NPA CASA Ratio CAR# CET I# ₹ 400,759 cr 0.34% 47.7% 21.2% 20.1% ₹ 341,733 cr 0.43% 53.3% 21.7% 20.7% Q3FY24 results include ₹143 cr provision (post tax) on applicable
Slide 8: Profit and Loss Account
Profit and Loss Account ₹ cr Q3FY24 Q3FY23 Q2FY24 FY23 Notes for Q3FY24 Net Interest Income 6,554 5,653 6,297 21,552 Trading and MTM loss* Q3FY24: ₹ 168 cr; Other Income 2,297 1,948 2,314 7,083 (Loss in Q3FY23: ₹ 51 cr, FY23: ₹ 973 cr, gain in Q2FY24: ₹ 150 cr) Fee and Services 2,144 1,695 2,026 6,7
Slide 9: Profit and Loss Account – 9MFY24
Profit and Loss Account – 9MFY24 ₹ cr 9MFY24 9MFY23 FY23 Net Interest Income 19,084 15,449 21,552 Notes for 9MFY24 Other Income 7,295 4,897 7,083 Fee and Services 5,998 4,861 6,790 Trading and MTM gain* 9MFY24: ₹ 222 cr; Others 1,297 36 293 (Loss in 9MFY23: ₹ 972 cr, FY23: ₹ 973 cr,) Net Total Incom
Slide 10: Asset Quality
Asset Quality ₹ cr 31-Dec-23 31-Dec-22 30-Sep-23 GNPA 6,302 5,995 6,087 NNPA 1,225 1,345 1,275 ₹ 1,177 cr (0.3% of Net Advances), 1.73% 1.90% 1.72% (₹ 748 cr – Q3FY23), GNPA (%) [31st Dec 2022: ₹ 191 cr] 0.34% 0.43% 0.37% Of this, ₹ 289 cr upgraded within NNPA (%) Q3FY24 (₹ 171 cr – Q3FY23) PCR 80.6
Slide 11: Balance Sheet
Balance Sheet ₹ cr 31-Dec-23 31-Dec-22 30-Sep-23 ₹ cr 31-Dec-23 31-Dec-22 30-Sep-23 Capital & Reserves and Surplus 92,994 79,936 89,956 Cash, Bank and Call 27,509 26,136 39,941 Deposits 408,636 344,666 400,963 Investments 145,751 112,219 128,646 CASA 195,049 183,579 193,479 Term Deposits 213,587 161
Slide 12: Customer Assets
Customer Assets ₹ cr 31-Dec-23 31-Dec-22 30-Sep-23 YoY QoQ Home Loans & LAP 102,234 89,112 99,100 15% 3% Consumer Bank WC (Secured) 33,790 28,127 33,095 20% 2% PL, BL and Consumer Durables 19,310 14,542 17,862 33% 8% Unsecured retail advances (incl. Retail Micro Credit Cards 13,882 9,159 12,597 52%
Slide 13: Deposits
Deposits Average Q3FY24 YoY % Q3FY23 CASA (EOP) (₹ cr) 5% Current Account 59,337 56,372 CASA % 47.7% 53.3% 48.3% 4% Savings Account 123,227 118,442 5,906 43% 17,074 15,933 Term Deposit 216,344 151,470 1,09,187 1,08,722 TD Sweep at ₹ 41,784 crore 1,14,072 QoQ growth: 13% (not annualized) 68,788 63,60
Slide 14: Investing in Technology Backbone
Investing in Technology Backbone Architecture & AI & Builder Risk and Data Analytics & Infrastructure Tools Security Automation Launched Tech@Kotak Optimized App Testing: Implemented an automated Tool: Launched new ML model: Developer Portal: CI/CD testing automation to To consistently evaluate the
Slide 15: Digital Highlights Digital Channels
Digital Updates Lending % of loans disbursed digitally 95% 99% 79% of new personal loans of new credit cards of new business loans Digital Highlights sold by volume sold (count) disbursed by volume Digital Channels Payments YoY growth in transaction volume Key Highlights 2.2x 1.4x 1.2x Continued to
Slide 16: Kotak Securities
Kotak Securities ₹ cr Q3FY24 Q3FY23 Q2FY24 FY23 Market ADV* (₹ ‘000 cr) 15,238 7,778 7,258 Total Income 999 784 962 2,986 12,938 Profit Before Tax 409 319 432 1,150 57 42 53 41 85 77 Profit After Tax 306 241 324 865 79 82 Market Share Cash* (%) 10.3 10.1 10.0 10.5 15,097 12,808 7,657 7,135 Derivativ
Slide 17: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ₹ cr Q3FY24 Q3FY23 Q2FY24 FY23 Gross written premium (₹ cr) Capital 562 562 562 562 3,975 3,623 3,617 15,320 Other Reserves and Surplus 5,192 4,560 5,053 4,765 1,754 1,779 7,324 2,058 Total Premium 3,975 3,623 3,617 15,320 963 4,045 976 1,052 Profit After Tax 350 333 28
Slide 18: Kotak Mahindra Prime
Kotak Mahindra Prime ₹ cr Q3FY24 Q3FY23 Q2FY24 FY23 Customer assets* (₹ cr) NII 474 412 460 1,646 Other Income 159 104 108 361 27,861 26,804 21,431 NII and Other Income 633 516 568 2,007 Profit Before Tax 320 302 278 1,110 5,083 5,552 4,836 Profit After Tax 239 225 208 829 Dec-23 Dec-22 Sep-23 Vehic
Slide 19: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. ₹ cr Q3FY24 Q3FY23 Q2FY24 FY23 Average Assets Under Management (₹ cr) - Overall Profit Before Tax 197 192 166 713 Profit After Tax 146 150 124 555 3,53,885 3,36,297 2,88,669 2,87,058 Notes Q3FY24 Q3FY23 Q2FY24 FY23 Investment profit Equity(Ex ETF & Arb) Average Asset
Slide 20: Assets Under Management
Assets Under Management Total: ₹ 533,365 cr Total: ₹ 405,269 cr 32% Domestic MF Equity Domestic MF Equity 2,29,168 1,58,866 Domestic MF Debt Domestic MF Debt 43% 1,24,037 1,33,023 39% 25% 31% Offshore Funds Offshore Funds 29,260 NPS & PMS NPS & PMS 52,082 6,667 4,327 10% 7% 1% 1% Alternate Asset* In
Slide 21: Geographical presence - Bank
Geographical presence - Bank Bank Branches distributed across various geographies Jammu & Kashmir 03 Himachal Pradesh 14 Punjab 100 Meghalaya 01 Uttarakhand 13 Haryana 87 Assam 06 Sikkim 02 Delhi 109 Uttar Pradesh 114 Branches Branch No. of ATMs# Rajasthan 80 1,869* [No./%] Classification Bihar 24 T
Slide 22: Group Profile
GROUP PROFILE 21
Slide 23: The Journey So far…
The Journey So far… Ability to Identify and Capitalize on Opportunities 2003 Bill Discount Auto Finance Investment IPO Mutual Funds Life Insurance* Securities BANK Banking Kotak Fyn Digital Video First Microfinance ING Vysya Merger ARC Alternate Kotak Cherry KYC International Digital Bank - 811 Gene
Slide 24: Kotak - Diversified and integrated financial services
Kotak - Diversified and integrated financial services Commercial Bank & Parent Company Car Finance | Other Lending Advisory Services for Middle East Investments | Lending Advisory Services | Investments Distribution Alternate Assets Asset Management Investment Banking Stock Broking | Commodity Broki
Slide 25: Present Across the Entire Value Chain
Present Across the Entire Value Chain Deposits across all customer segments Wholesale Banking Commercial Banking Corporate & Institutional • Corporate Loans • Agriculture Finance • Trade Finance • Tractor Finance Very Large • Investment Banking • Business Banking • Commercial Vehicles • Commercial R
Slide 26: Our Strengths
Our Strengths An integrated financial Healthy asset Digital & Ability to identify Strong brand Strong governance services conglomerate quality & prudent technological and capitalize on and leadership culture and an with a diversified risk management capabilities opportunities across businesses exper
Slide 27: Our Strategy
Our Strategy Keep customer at the core of the Investing in technology (both infrastructure Continue journey on best in class digital business in order to provide and applications), with a dual objective – processes and interface at speed a positive experience and build ‘run the Bank’ and ‘change the
Slide 28: The Path of Leadership
The Path of Leadership Strong Capital Position Multiple Growth Engines Risks Management Attract & Retain Talent Cross Sell Opportunities Capital adequacy amongst A stable annuity flow driven Extensive on-the-ground High degree of stability Robust bank platform and the highest in the Indian business
Slide 29: Strong and Committed Leadership Team
Strong and Committed Leadership Team Senior Leadership Team with Long Vintage Ashok Vaswani KVS Manian Shanti Ekambaram Virat Diwanji Jaimin Bhatt Paul Parambi <1 Year 29 Years 33 Years 20 Years 29 Years 32 Years Managing Director & Whole-time Director Whole-time Director Consumer Banking Group CFO
Slide 30: Disclaimer
Disclaimer This presentation is for information purposes only and Equity does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Kotak Mahindra Bank Limited (the “Bank”) and no part of it shall form the basis of or be relied upon in connect
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