Bank PAT for Q4FY16 Rs. 696 cr
Consolidated PAT for Q4FY16 Rs. 1,055 cr
Mumbai, May 12, 2016 The Board of Directors of Kotak Mahindra Bank (‘Bank’ or ‘KMBL’) took on record the audited standalone and consolidated results for FY16 at the Board meeting held in Mumbai today.
The merger of ING Vysya Bank (‘eIVBL’) with the Bank was effective from April 1, 2015 and accordingly the results for the quarter and year ended March 31, 2016 are for the merged entity and not comparable with previous periods.
Kotak Mahindra Bank (Standalone)
- Profit After Tax (PAT) for Q4FY16 of 696 cr
- Net Interest Income (NII) for Q4FY16 was 1,857 cr
- Net Interest Margin (NIM) for Q4FY16 stood at 4.35%
- Advances as on March 31, 2016 were 118,665 cr
- Deposits as on March 31, 2016 increased to 138,643 cr. Savings deposits as on March 31, 2016 grew to Rs. 29,495 cr. CASA stood at 38%. For the quarter, average SA at eIVBL branches grew 34% YoY and in KMBL branches at 43%.
- Capital Adequacy Ratio of the Bank as per Basel III as on March 31, 2016 is 16.3% and Tier I ratio is 15.3%
- As on March 31, 2016, the Bank has a network of 1,333 full-fledged branches and 2,032 ATMs having both breadth and depth given the strong geographic complementarity of the merger.
As on March 31, 2016, the Branch footprint was as under
| Branches | KMBL (Combined) |
| West | 31% |
| North | 29% |
| South | 34% |
| East | 6% |
| Total | 1,333 |
Provision impact, including provision on SRs and credit substitutes, on Q4FY16 results was Rs. 200 cr of which a significant portion was from eIVBL. As on March 31, 2016, GNPA was 2.36% & NNPA was 1.06%. As on March 31, 2016, SMA2 outstanding was Rs. 153 cr (0.13% of net advances).
Announcing the results, Uday Kotak, Executive Vice Chairman & Managing Director, KMBL said, “The year 2015-2016 has been one of transition and consolidation post our merger. The process of integration is in its last leg. Our future looks promising in a sector which is otherwise challenging. We look forward to moving towards a leadership position in Indian financial services.”
During the quarter, people and process integration has been completed and technology integration is in the final lap. The Bank is taking multiple steps to ensure smooth data migration from one core banking platform to another. We expect completion of integration in Q1FY17. To ensure that one of the largest Indian banking mergers is also one of the smoothest, various initiatives including a detailed customer communication plan has been rolled out.
The Board of Directors at its meeting held today has recommended a dividend of Rs. 0.50 per equity share having face value of Rs. 5 for the year ended 31st March, 2016 (Previous Year Rs. 0.90 per equity share having face value Rs. 5). The dividend will be paid after the approval of shareholders at the Annual General Meeting.
Consolidated results at a glance
Consolidated PAT for Q4FY16 was Rs. 1,055 cr
Consolidated Advances increased to Rs. 144,793 cr as on March 31, 2016
Consolidated NIM for Q4FY16 stood at 4.38%
Consolidated Capital Adequacy Ratio as per Basel III as on March 31, 2016 is 17.0% and Tier 1 ratio is 16.1%
Total assets managed / advised by the Group as on March 31, 2016 were Rs. 102,249 cr
Consolidated Networth as on March 31, 2016 was Rs. 33,361 cr
Digital remains an area of focus for the Group. Bank and other subsidiaries like Securities, Life Insurance and Mutual Fund are gaining significant traction and market share.
Other major subsidiaries profit after tax are as under:
| Rs. cr | Q4FY16 |
| Kotak Mahindra Prime | 130 |
| Kotak Mahindra Investments | 50 |
| Kotak Mahindra Old Mutual Life Insurance | 77 |
| Kotak Securities | 51 |
About Kotak Mahindra Group
Established in 1985, Kotak Mahindra Group is one of India’s leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group’s flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first non-banking finance company in India to convert into a bank – Kotak Mahindra Bank Ltd.
Effective April 1, 2015, ING Vysya Bank Ltd. has merged with Kotak Mahindra Bank Ltd. creating a Rs. 2 trillion institution (consolidated). As on March 31, 2016, the merged entity – Kotak Mahindra Bank Ltd, has a significant national footprint of 1,333 branches spread across 674 locations and 2,032 ATMs, affording it the capacity and means to serve even better.
The consolidated net worth of the Group stands at Rs. 334 billion (approx. US$ 5.0 billion) as on March 31, 2016. The Group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The Group has a wide distribution network through branches and franchisees across India, an International Business Unit at GIFT city, Gujarat, and international offices in London, New York, Dubai, Abu Dhabi, Mauritius and Singapore.
For more information, please visit the company’s website at http://www.kotak.com/