Kotak Mahindra Bank Q2 net profit at Rs.1441 crore

Kotak Mahindra Bank Q2 net profit at Rs.1441 crore

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Kotak Mahindra Bank reported results for the second quarter ended 30th September, 2017.

The PAT for the quarter increased to Rs.1441 crore from Rs1202 crore in Q2FY17 ,up 20%.

NIM for the quarter stood at 4.30%.

Advances were up by 22% to Rs.187,758 crore for the quarter.

Capital Adequacy Ratio is 19.2%.The networth was Rs.46,975 crore.

On receipt of all the requisite approvals, the Bank acquired 26% stake in Kotak Life from Old Mutual plc. for Rs 1,293 cr on October 13, 2017. Post the transaction, Kotak Life becomes a 100% subsidiary of the Bank. Also, on September 27, 2017, the Bank consummated the transaction of acquisition of BSS Microfinance as a subsidiary of the Bank.

Digital Update

On March 29, 2017, the Bank launched 811 – a completely digital and paperless account opening experience. The Total customers of the Bank are around 10.5 mn as on September 30, 2017.

Digital remains an area of focus for the Group. Bank and other subsidiaries like Securities, Insurance, Mutual Fund and Kotak Prime are gaining significant traction and market share.

Transactions for the Bank on mobile platform grew by 125% in terms of volume in Q2FY18 vis a vis a year ago. During Q2FY18, the share of Recurring Deposits sourced digitally was 77% and that of Term Deposits was 60%. The digital share of salaried personal loans rose to 29% in Q2FY18. During the quarter, the Bank also launched a new customer centric; mobile first website with a view to service customers better. On a YoY basis, total payment gateway transactions for the month of September, 2017 have grown 147% in terms of volume and 68% in terms of value. Online shopping payment gateway transactions from mobile have grown 70% in September 2017.

Kotak Securities mobile transaction ADVs grew 81% in Q2FY18. 75% of the individual policies written by Kotak Life Insurance were sourced through Genie – tablet based end to end sales solution. Further, 89% of the Banca channel sales in Q2FY18 were through Genie. In the case of Kotak General Insurance, more than 25% of new business sourced through digital channels in Q2FY18. We also launched online consumer durable finance loans through fintech tie-ups in Kotak Prime.