Kotak Mahindra Bank Q4 results studded by records in lending, margins, and bad loans

Kotak Mahindra Bank’s March quarter result proved to be a star-studded one.

The private lender on Wednesday reported a 65 percent jump in standalone net profit at Rs 2,767.40 crore in the three months ended March 2022, with sequential improvement in asset quality of the lender.

Kotak Mahindra's net profit exceeded analysts' estimates by a wide margin.

It recorded an all-time high net interest margin (NIM), a key measure of profitability at 4.78 percent, up 39 basis points (bps) from last year.

The Bank’s loan growth – at 21.3 percent (year-on-year) – was also the best in the last 13 quarters while its operating profit growth of 24 percent (quarter-on-quarter) was also the best in the last 26 quarters.

The bank’s net customer additions stood at 2 million in the March quarter as compared to 1.1 million a year ago.

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On the asset quality front, Kotak Mahindra Bank's gross non-performing asset ratio stood at 2.34 percent, a five-quarter low.

Another feather in the cap was the return on assets - which came in at 2.68 percent - the highest amongst large banks.

Here is a glimpse of the lender's asset quality trend on a sequential basis

The private sector bank's board also recommended a dividend of Rs 1.1 per share for the financial year ended March.

Shares of Kotak Mahindra Bank gained over 2 percent at Rs 1,812 on BSE after the results were announced.