Kotak Mahindra Bank Ltd has announced its first quarter earnings for the financial year 2024-25, on July 20.
How did Kotak Mahindra Bank perform financially for the first quarter of 2024-25?
The bank saw its standalone net profit skyrocket by 81% to ₹6,249.82 crore from ₹3,452.30 crore during the first quarter of the financial year 2023-24. This was an increase of ₹2,797.52 crore.
The income on interest rose by 21.39% to ₹12,746.11 crore from ₹10,500.00 crore during the same quarter of the previous year, an increase of ₹2,246.11 crore.
Income on investments grew by 29.13% or by ₹548.78 crore to ₹2,592.18 crore this year from ₹2,007.40 crore last year. This is an important figure as it represents how much funds the bank put aside apart from lending.
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Other income rose by 9.16% or by ₹245.78 crore from ₹2,683.26 crore during the previous year’s quarter to ₹2,929.04 crore this year’s quarter. Other Income includes non-fund based income such as commission earned from guarantees, letters of credit, financial advisory fees, selling of third party products, general banking fees, earnings from foreign exchange transactions, and profit (including revaluation) from sale and revaluation of eligible category of investments.
How much were Kotak Mahindra Bank’s expenses?
The bank’s operating expenses grew by 13.86% to ₹4,517.28 crore from ₹3,967.38 crore in the first quarter of the financial year 2023-24. This was an increase of ₹549.9 crore.
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Kotak Mahindra Bank’s total expenditure also increased by 26.56% to ₹10,421.04 crore from ₹8,233.69 crore last year, an increase of ₹2,187.35 crore.
The bank has also significantly increased the amount of its provisioning by ₹214.17 crore to ₹578.48, which is a 58.78% jump from the same quarter of the previous year’s ₹364.31 crore.
During the same quarter, Kotak Mahindra Bank also granted 1,637,220 stock options under the employee stock option (ESOP) scheme, of which, 30,400 were exercised. 4,305,583 stock options were outstanding with employees of the Bank and its subsidiaries as on June 30, 2024.
What happened to the stake sale of Kotak Mahindra General Insurance Company to Zurich Insurance Company?
The bank on June 18, also completed the sale of 70% stake in its subsidiary, Kotak Mahindra General Insurance Company Limited to Zurich Insurance Company Limited, according to its stock exchange filing.
This stake sale was that of 553,181,595 equity shares of Kotak Mahindra General Insurance Company for ₹4,095.82 crore, with a pre-tax net gain of ₹3,519.90 crore.
The bank still holds the remaining 30% of the shares of Kotak Mahindra General Insurance Company.
How did Kotak Mahindra Bank’s shares perform?
Kotak Mahindra Bank’s shares closed at ₹1821.75 on the Bombay Stock Exchange during the week’s last trading session on Friday, June 19. It was a drop of 0.07% or 1.35 points from the previous day.