Kotak Mahindra is a private sector bank that offers a wide range of financial services. The bank manages IPO, offers loans, banking transaction banking and more.
The market capitalisation of the bank as of March 2018, is around Rs.201,007.80 crores.
Kotak Mahindra Wealth and Recent PerformanceQ1 FY 2018-19
- For the quarter ended on June 30, 2018, Kotak Mahindra Bank Limited reported its consolidated total income to be at Rs.9,903.5 crore. The total income for the same quarter of the previous financial year was reported to be Rs.8,604.5 crore.
- The provisions and contingencies for the June quarter were kept at Rs.499 crore, in comparison to Rs.232.2 crore reported for the corresponding quarter of the previous year.
- Considering the profitability of the company for the quarter, Kotak Mahindra Bank Limited reported a consolidated profit after tax of Rs.1,574.4 crore. With respect to the same quarter of the previous year, this marked an increase of a little over Rs.200 crore.
- The company’s basic earnings per share (EPS) increased from Rs.7.20 to Rs.8.26 y-o-y. Considering the non-performing assets (NPA), its Gross NPA ratio was reported to be at 1.93 while its Net NPA ratio was reported to be 0.77.
- For the year ended on March 31, 2018, Kotak Mahindra Bank Limited reported its consolidated total income to be at Rs.38,724 crore. This marked an improvement of a little over 14% with respect to the income reported for the previous financial year.
- The provisions and contingencies for the year increased marginally by a little over 5% y-o-y from Rs.948.9 crore to Rs.1,024.7 crore.
- The consolidated profit after tax for the year improved significantly by more than 22% y-o-y from Rs.4,940 crore to Rs.6,200 crore. On account of this drastic increase in the profit, the company’s basic earnings per share also increased from Rs.26.89 to Rs.32.70.
- The Gross NPA ratio came down from 2.25% to 1.95% over the course of the financial year. Similarly, the company’s Net NPA ratio also incurred a gradual fall from 1.09% to 0.86%.
- On a y-o-y basis, the company’s deposits grew from Rs.1,55,540 crore to Rs.1,91,235 crore. Similarly, its total advances also grew in the same period from Rs.1,67,124 crore to Rs.2,05,997.2 crore.
- The company’s net profit reported an increase of 20% year-on-year (y-o-y) third quarter Rs.1,053 crore as compared to Rs.880 crore in the year-ago quarter. Kotak Mahindra’s consolidated net profit for Q3 FY18 increased 28% to Rs.1,624 cr from Rs.1,267 cr in Q3FY17.
- The company’s net interest income was up 17% to Rs.2,394 crore. Net interest is the difference between interest earned and interest expended. Meanwhile, other income that includes fee and services and others increased 14% to Rs.1,040 crore.
- The standalone net interest margin (NIM) came in at 4.2%. The gross non-performing assets (NPAs) ratio was at 2.31% against 2.47% quarter on quarter, while net NPA ratio was 1.09% against 1.26%.
- As on December 31, 2017, the advances were up 23% to Rs.159,071 crore as against Rs.129,261 cr as on December 31, 2016). Meanwhile, customer assets (Advances + Investment Credit Substitutes) stood at Rs.166,357 cr as on December 31, 2017 up by 23%.
- Kotak Mahindra Bank’s average savings deposits grew by 60% to Rs.55,397 cr as on December 31, 2017 compared to Rs. 34,691 cr as on December 31, 2016. On the other hand, average current account deposits grew by 21% to Rs. 24,776 cr as on December 31, 2017 compared to Rs.20,406 cr as on December 31, 2016.
- The bank’s current and saving account ratio (CASA) as on December 31, 2017 stood at 46.7% compared to 42% as on December 31, 2016.
- The total customers of the bank are around 12 million as on December 31, 2017. Kotak Mahindra Bank is focusing on digital payments. Transactions for the bank on mobile platform grew by 120% in terms of volume in Q3FY18 vis a vis a year ago.
- Total payment gateway transactions for the month of December 2017 increased 115% in terms of volume and 64% in terms of value on YoY basis.
Kotak Mahindra Stock Trends in 2018
- The opening price of the stock on January 1, 2018 was Rs.1,011.85 while the closing price at the end of the month was Rs.1,084. At the beginning of February, the price of the stock was Rs.1,105 and by the end of February it was Rs.1,090.
- The price of the stock did not change drastically throughout March and was Rs. 1044 by the end of the month.
- In April, the Kotak Mahindra Bank Limited share price started moving up in a gradual manner. The scrip commenced the month trading at Rs.1,049.05 on the NSE. The shares gained a little over 15% over the course of the month to ascend into the Rs.1,200 region.
- A similar trend was seen in the month of May as well. The shares continued to head up their usual trajectory and appreciated by another 5%. Soon, the shares ventured into the Rs.1,300 region and the closing price of the scrip on May 31, 2018, was Rs.1,334.6 on the NSE.
- The prices stabilised in June and for most of the month, the shares were traded at levels varying from Rs.1,300 - Rs.1,350. In July, the company announced a final dividend of 14%. This announcement was soon followed by the Kotak Mahindra Bank shares hitting their 52-week high at Rs.1,417.
- However, through the course of August and September, the shares lost momentum and scrip descended back into the Rs.1,200 region.
Kotak Mahindra Stock Trends in 2016 and 2017
- The opening price of the stock on January 1, 2016 was Rs.720 while the closing price was Rs.664 at the end of the month. In March, the price was down to Rs.620 but ended the month at Rs.677.
- In June, the price of the stock was close to Rs.750 while in September the price crossed Rs.800.
- The price of the stock at the beginning of November was Rs.819 while at the end of December 2016 it was Rs.714.
- At the beginning of January 2017, the price of the stock was Rs.720 and crossed Rs.800 by the end of February. The price continued to increase and by the end of April 2017 it crossed Rs.900.
- In the later half of the June, the price of the stock hit Rs.999 and by the end of July it was Rs.1018.
- At the beginning of September 2017, the price of the stock was Rs.979 while at the end of the October it was close to Rs.1030.
- In November, the price declined to Rs.994 while the stock closed at Rs.1003 at the end of December 2017.
Should you invest in Kotak Mahindra Bank ?
Kotak Mahindra Bank has seen an increase in the monthly profits and number of customers. The bank has also seen an increase in digital transactions and wants to focus further on digital payments. The stock has been stable over the years and hence investing in Kotak Mahindra bank for a long-term could be a good option. However, it is advised to do thorough research and take advice from financial expert before investing in any stocks.
Kotak Mahindra Bank offers retail as well as corporate customers with a wide range of banking products and financial services. In addition, the bank offers investment products like Mutual Funds, Life Insurance, retailing of gold coins and bars etc. Headquartered in Mumbai, the bank has 1,375 branches across 700 locations and 2,171 ATMs, as on 31 December 2017.
History of the Company
Kotak Mahindra Bank was incorporated in 1985 under the name Kotak Capital Management Finance Ltd. Promoted by Mr. Uday S Kotak, Mr S.A.A Pinto and Kotak & Company, it obtained the certificate of commencement of business on February 11, 1986. Mr. Harish Mahindra and Mr. Anand Mahindra soon joined the existing promoters. The bank entered lease and hire business in 1987 and the auto finance division was launched to finance cars in 1990. The investment banking division was established in 1991. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, becomes India’s first non-banking finance company to be converted into commercial bank. The company received banking license from the Reserve Bank of India (RBI) for the same. Kotak Mahindra Bank acquired 51% of the paid up Share capital of Kotak Mahindra Securities Ltd (KMSL) in September 2006. The pension fund was launched under India’s National Pension Scheme (NPS). RBI approved the merger of ING Vysya Bank with Kotak Mahindra Bank with effect from April 1, 2015. The deal was valued at Rs.15,000 crore. In 2016, the bank acquired 10 lakh equity shares of Institutional Investor Advisory Services India Ltd. Kotak Mahindra Bank acquired BSS Microfinance Private Limited in 2017. Kotak launched 811, a digital banking app in March 2017 that offers zero-balance accounts with the aim to double bank's customers to 16 million.
Management of the Company
Mr. Uday Kotak - Executive Chairman and Managing Director
Mr. Uday Kotak started Kotak Capital Management Finance Ltd. (which later became Kotak Mahindra Finance Ltd). He currently serves as the Executive Vice Chairman and Managing Director at Kotak Mahindra Bank Limited. In addition, he is also the member of Executive Board. Mr. Kotak serves as an Executive Vice Chairman and Managing Director at Kotak Mahindra (UK) Ltd. He is the Principal Founder and Promoter of Kotak Mahindra Finance Ltd. Mr. Kotak holds a Bachelor's degree in Commerce and an M.B.A. from Jamnalal Bajaj Institute of Management Studies of Mumbai University.
Kotak Mahindra Bank Listing and Indices
The stocks of Kotak Mahindra can be bought and sold on the two major stock exchanges in the country - National Stock Exchange and Bombay Stock Exchange. The codes for the same are mentioned below.
BSE - 500247
NSE - KOTAKBANK
ISIN - INE237A01028
Sector - Private Sector Banks
Kotak Mahindra Bank stocks forms a part of different indices and they are mentioned below:
- Nifty 50
- Nifty 100
- Nifty 200
- Nifty 500
- Nifty Next 50
- S&P BSE 100
- S&P BSE 200
- S&P BSE 500
27 BKC C-27 G-Block,
Bandra Kurla Complex Bandra(E),Mumbai,
Tell. : +91-22-61660000
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