Kotak Mahindra Bank Announces Results- Q2 FY2023-24

Bengaluru, 25th October, 2023: The Board of Directors of Kotak Mahindra Bank (“the Bank”) approved the unaudited standalone and consolidated results for the quarter and half-year ended September 30, 2023, at the Board meeting held in Mumbai, today.

Kotak Mahindra Bank standalone results

The Bank’s PAT for Q2FY24 stood at ₹ 3,191 crore, up 24% YoY from ₹ 2,581 crore in Q2FY23.

Net Interest Income (NII) for Q2FY24 increased to ₹ 6,297 crore, from ₹ 5,099 crore in Q2FY23, up 23% YoY. Net Interest Margin (NIM) was 5.22% for Q2FY24.

Fees and services for Q2FY24 increased to ₹ 2,026 crore from ₹ 1,638 crore in Q2FY23, up 24% YoY.

Operating profit for Q2FY24 was ₹ 4,610 crore, up 29% YoY (Q2FY23: ₹ 3,568 crore).

Customers as at September 30, 2023 were 45.8 mn (36.6 mn as at September 30, 2022).

Advances (incl. IBPC & BRDS) increased 21% YoY to ₹ 3,57,012 crore as at September 30, 2023 from

₹ 296,117 crore as at September 30, 2022. Customer Assets, which comprises Advances (incl. IBPC & BRDS) and Credit Substitutes, increased by 18% YoY to ₹ 3,80,412 crore as at September 30, 2023 from ₹ 3,23,418 crore as at September 30, 2022.

Unsecured retail advances (incl. Retail Micro Finance) as a % of net advances stood at 11.0% as at September 30, 2023. (8.7% as at September 30, 2022).

CASA ratio as at September 30, 2023 stood at 48.3%.

Average Current deposits grew to ₹ 58,351 crore for Q2FY24 compared to ₹ 53,971 crore for Q2FY23 up 8%. Average Savings deposits stood at ₹ 121,967 crore as at September 30, 2023 (₹ 122,595 crore as at September 30, 2022). Average Term deposit up 47% from ₹ 139,871 crore for Q2FY23 to ₹ 205,632 crore for Q2FY24.

ActivMoney was launched in Q1FY24 and TD sweep balance grew 28% QoQ (non-annualised) to ₹ 37,136 crore.

As at September 30, 2023, GNPA was 1.72% & NNPA was 0.37% (GNPA was 2.08% & NNPA was 0.55% at September 30, 2022). The provision coverage ratio stood at 79.1%.

Capital Adequacy Ratio of the Bank, as at September 30, 2023 was 21.7% and CET I ratio of 20.6% (both including unaudited profits).

Consolidated results at a glance

Consolidated PAT for Q2FY24 was ₹ 4,461 crore, up 24% YoY from ₹ 3,608 crore in Q2FY23.

PAT of Bank and key subsidiaries given below:

At the consolidated level, the Return on Assets (ROA) for Q2FY24 (annualized) was 2.68% (2.61% for Q2FY23). Return on Equity (ROE) for Q2FY24 (annualized) was 14.99% (14.09% for Q2FY23).

Consolidated Capital Adequacy Ratio as per Basel III as at September 30, 2023 was 22.9% and CET I ratio was 21.9% (both including unaudited profits).

Consolidated Capital and Reserves & Surplus as at September 30, 2023 was ₹ 1,20,737 crore (₹ 1,03,578 crore as at September 30, 2022). The Book Value per Share was ₹ 605.

Consolidated Customer Assets which comprises Advances (incl. IBPC & BRDS) and Credit Substitutes grew by 19% YoY from ₹ 3,59,154 crore as at September 30, 2022 to ₹ 4,28,404 crore as at September 30, 2023.

Total assets managed / advised by the Group as at September 30, 2023 were ₹ 4,98,342 crore up 28% YoY over ₹ 3,90,741 crore as at September 30, 2022. The Alternate Assets’ AUM (includes undrawn commitments, wherever applicable) increased by 61% YoY to ₹ 44,456 crore as at September 30, 2023.

The financial statements of Indian subsidiaries (excluding insurance companies) and associates are prepared as per Indian Accounting Standards in accordance with the Companies (Indian Accounting Standards) Rules, 2015. The financial statements of subsidiaries located outside India are prepared in accordance with accounting principles generally accepted in their respective countries. However, for the purpose of preparation of the consolidated financial results, the results of subsidiaries and associates are in accordance with Generally Accepted Accounting Principles in India (‘GAAP’) specified under Section 133 and relevant provision of Companies Act, 2013.

MEITY’s Electropreneur Park announces the first successful financial exit for its incubated and leading health-tech startup – UnivLabs Technologies Pvt Ltd.

New Delhi, Oct 25, 2023: In a major boost to the Indian Electronics System Design and Manufacturing (ESDM) market, Electropreneur Park (EP) announced the exit of Univlabs, a leading Indian health-tech startup. With its remarkable growth journey, Univlabs Technologies has established its presence in 6 countries, offering innovative solutions to 2000+ hospitals in India and overseas. So far, the startup has applied for 11 patents while having 2 to its name.

An initiative of the Ministry of Electronics and IT, Electropreneur Park, has been set up primarily to carry out incubation and build an ecosystem to help budding ESDM entrepreneurs. EP is managed by Software Technology Parks of India and implemented by the India Electronics and Semiconductor Association (IESA). Since its inception, Electropreneur Park has incubated 59 companies, which have developed 125 products, applied for 66 patents, and generated employment opportunities for 885 professionals. The startups of EP have received Rs 21.79 crore of follow-on funding.

UnivLabs Technologies began its growth journey with Electropreneur Park with a mission to revolutionize healthcare by providing affordable and cutting-edge medical devices that improve patient outcomes. This unprecedented success for Univlabs is a beacon of hope for the future of electronic innovation in India. Emphasizing the immense potential within the Indian ESDM sector, the growth journey for Univlabs Technologies, fostered by Electropreneur Park, significantly contributes to the Indian government’s “Make in India” vision.

The startup received a valuation of ₹20 crore and initiated an investor buyback from stakeholders of EP incubator worth Rs ₹94.64 lakhs, marking a 36X growth for EP’s investment, marking a milestone in EP’s history. With this, Univlabs’ successful exit leaves an impressive footprint of Electropreneur Park’s role in fostering innovation and entrepreneurship over the past seven years of its operations. The exit was formally announced with a cheque handover ceremony during the inauguration of the Apiary CoE incubation facility. The launch of the Apiary CoE incubation facility has marked the beginning of yet another chapter of supporting budding entrepreneurs and startups by STPI. The launch event was graced by the presence of Shri S. Krishnan, IAS, Secretary, Ministry of Electronics and IT, and other dignitaries from the IT industry.

“It’s quite inspiring to meet and learn the journey of Sunil Singh, founder of Univlabs Technologies. The level of confidence, vision and ability to persevere over the last eight years have been crucial for his success. He should stand as an example of somebody who everyone can imitate,” said Shri S. Krishnan, IAS, Secretary, Ministry of Electronics and IT.

On the successful and profitable exit of UnivLabs, Shri Arvind Kumar, Director General, STPI expressed how Electropreneur Park has been successful in fostering innovation and entrepreneurship and said, “In the last few years since it was set up, Electropreneur Park has incubated ESDM startups aligning with India’s commitment and vision to reach US$ 300 billion worth of electronics manufacturing and exports of US$ 120 billion by 2025-26, this progress is a promising development. Looking forward to witnessing more such startups leading the way of nurturing India’s ESDM market.”

Shri. Sanjay Gupta, Chairman, IESA, Shri. Pradeep Gupta, CMD, CyberMedia Group and Chief Mentor of EP, and Sunil Singh, Founder & CEO, Univlabs Technologies, were also present at the occasion.

Repsol Honda Team work for more after Australia’s first Saturday Grand Prix

Australia, October 25, 2023: Schedule changes made for a busy Saturday in Australia as the Repsol Honda Team contested practice, Qualifying and the Grand Prix all in the same day.

For the first time since 2015, a Grand Prix was held on Saturday as weather warnings forced a change of schedule on safety grounds. This made for an intense day as the MotoGP field completed practice, two Qualifying sessions and had the full length Australian Grand Prix all moved to the same day.

As the weather continued to cool from Friday, the Repsol Honda Team headed out on track for Q1 alongside a number of big names for an intense 15-minute session. Marc Marquez would time his run perfectly to enter the top two on his final flying lap, advancing through to Q2. Ultimately taking seventh on the grid with a best time of 1’28.012, the eight-time World Champion ended 0.766s off pole.

From the head of the third row, Marquez lost a little ground in the run down to Turn 1 but quickly rallied and recovered to challenge the top five. A spirited start to the race had the #93 as an early podium contender but he quickly had to switch into a more defensive posture as the competition around him increased. Gambling with the soft, the latter half of the race became about survival, and he crossed the line in 15th to collect a solitary point.

Joan Mir started the full-length Grand Prix from 16th on the grid after taking some steps forward with the setting of his Repsol Honda Team RC213V in the morning. From here, Mir was able launch well and work his way forward and into the points. Riding comfortably and able to gain on those ahead of him in almost every corner, the Repsol Honda Team rider found himself in a multi-rider battle. Unfortunately, the fighting would get too heated and contact with Marini at Turn 4 in the middle of the race would result in Mir retiring soon after.

A further schedule change has seen the Sprint Race brought forward to 13:00 Local Time on Sunday, set to be run over 13 laps.

Marc Marquez (15^th)

“Last year the soft tyre brought us the podium, this year the gamble didn’t pay off. I was hoping for a slower race, but straight away Martin was pushing hard and I knew it would be a very fast race. At the start I really enjoyed the ten or so laps with Bagnaia and Zarco as we were fighting a lot. Then I needed to change my tactic and just focus on bringing the bike home as I was suffering more with tyre life. Now we wait and see what will happen with the situation tomorrow.”

Joan Mir (DNF)

“I disappointed with today, it is another hard one. I was just trying to make my race, not hurting anyone, trying to take care of the tyres because you saw what happened at the end of the race. We were working in the correct way according to the data. Then Marini tried to overtake me and hit me, and I fell after losing the front. Being in the back, the situation is more complicated as the riders are fighting a lot – I was a victim of it today. But this is racing. Let’s see tomorrow.”

Australian Grand Prix

Rider standings

L&T Finance Holdings Ltd. records Profit After Tax (PAT) of Rs. 595 crore (Consolidated)

L&T Finance Holdings Ltd. (LTFH), one of the leading Non-Banking Financial Companies (NBFCs), which is accelerating its journey towards becoming a customer-focused, top-class, digitally-enabled Retail NBFC has posted a consolidated PAT of Rs. 595 crore for the second quarter ended September 30, 2023, recording a growth of 46 percent YoY.

The Company has also achieved a Retail loan portfolio mix of 88 percent of the total loan book, which is over the 80 percent Retailisation target set under the Lakshya 2026 goal. The Company has achieved most of the Lakshya 2026 goals almost 3 years in advance.

The Company’s customer-facing application – PLANET app, which was soft-launched in the fourth quarter of the financial year 2021-2022, has emerged as a powerful digital channel for its customers and has crossed 60 lakh downloads.

The quarterly Retail disbursements stood at Rs. 13,499 crore for the second quarter ended September 30, 2023, recording a growth of 32 percent YoY. This quarterly disbursement is the highest ever by LTFH in Retail finance since inception and has been driven by strong growth across all Retail segments. The Retail book now stands at Rs. 69,417 crore, up 33 percent when compared with the quarter ending September 30, 2022.

During the quarter, LTFH continued with the strategy of rapidly reducing its Wholesale book. The Wholesale book saw a reduction of 76 percent YoY from Rs. 38,058 crore to Rs, 9,318 crore in line with Lakshya 2026 goals gaining momentum and metamorphosizing LTFH into a Retail Fintech@Scale.

Commenting on the financial results, Mr. Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings Ltd. said, “After having achieved most of our Lakshya 2026 goals, it gives me immense pleasure to announce that we have continued the trajectory of metamorphosizing into a top-notch Retail finance Company. During the quarter, LTFH not only reached a retail portfolio mix of 88 percent, but also achieved the highest ever quarterly Retail disbursements of Rs. 13,499 crore, registering a growth of 32 percent YoY. This achievement is attributed to the twin strategy of strongly growing the retail asset book on one side and ensuring a sharp reduction in the wholesale book on the other, while maintaining best-in-class asset quality.”

“On the fintech front, our customer facing application PLANET has crossed 60 lakh downloads as of date and is constantly evolving to offer exciting features to our customers, while servicing most of their requirements.”

“Going forward, we will continue to focus on sustainably delivering Lakshya goals through a concentrated focus on 5 key pillars, namely enhanced customer acquisition, sharpening credit underwriting, implementing futuristic digital architecture, heightened brand visibility and capability building. At LTFH, we strongly believe that the Retail segment holds promising opportunities, and we will continue to grow and ride this growth by scaling up our product portfolio, customer touchpoints, capability enhancements, and use of data analytics in doing business. We will sustain our growth momentum and continue to work towards creating a customer-focused and sustainable Fintech@Scale. The Company will continue to develop digital finance delivery as a customer value proposition thereby touching every part of the customer ecosystem through our digital offerings.”

Key Highlights:

· Rural Group Loans & Micro Finance registered its highest ever quarterly disbursements during the second quarter ended September 30, 2023 at Rs. 5,740 crore, recording a YoY growth of 30 percent. This growth was aided by a strong disbursal run rate of over Rs. 1,900 crore, in the month of July and August 2023, coupled with an optimized geographic mix which saw increased contribution from southern states. Additionally, there was a focus on strengthening customer retention with a substantial share of vintage borrowers that also encouraged growth for the segment. As for the book, it saw a growth of 37 percent YoY and stood at Rs. 21,672 crore vs. Rs. 15,840 crore in the second quarter ended September 30, 2022.

· Farm Equipment Finance disbursements during the second quarter ended September 30, 2023 saw a YoY growth of 18 percent at Rs. 1,534 crore vs. Rs. 1,304 crore in the second quarter ended September 30, 2022. The business witnessed growth on the back of analytics driven dealer relationships leading to higher counter share with top dealers and focused customer retention through top up products. In addition, a 15 percent YoY growth in disbursements was registered towards the New Tractor segment coupled with enhanced customer retention through Kisan Suvidha, the top-up and refinance product which contributed 25 percent of disbursements. The book size registered a growth of 13 percent YoY and stood at Rs. 13,351 crore vs. Rs. 11,865 crore in the second quarter ended September 30, 2022.

· Two-Wheeler Finance disbursements during the second quarter ended September 30, 2023 saw a YoY growth of 6 percent at Rs. 1,817 crore vs. Rs. 1,721 crore in the second quarter ended September 30, 2022. The Company continues to focus on analytics driven dealer relationships while building a robust network of dealerships through new initiatives. During the quarter LTF financed 7,350 Electric Vehicles (EV) and partnered with Ather Energy to finance up to 100 percent of the loan-to-value on purchase of Two-Wheeler Electric Vehicles (EVs). The book size registered a growth of 18 percent YoY at Rs. 9,518 crore vs. Rs. 8,093 crore in the second quarter ended September 30, 2022.

· Personal Loans segment continued to scale up while protecting portfolio quality with a disbursement of Rs. 1,308 crore in the second quarter ended September 30, 2023 (up 13 percent Quarter-on-Quarter). During the quarter, the book size reached Rs. 6,481 crore with the entire focus being put on reimagining journeys while leveraging the existing customer database and scaling up the e-aggregator channel.

· Home Loans and Loans Against Property (LAP) disbursements showed sustained growth momentum in the second quarter ended September 30, 2023 with Home Loan disbursements witnessing a YoY growth of 34 percent to Rs. 1,356 crore vs. Rs. 1,013 crore in the second quarter ended September 30, 2022 while LAP disbursements registering disbursement of Rs. 378 crore against Rs. 104 crore in the second quarter ended September 30, 2022. As for the book size, Home Loan grew by 34 percent YoY and stood at Rs. 12,216 crore vs. Rs. 9,105 crore whereas for the LAP business it saw a growth of 14 percent YoY and stood at Rs. 3,038 crore vs. Rs. 2,665 crore in the second quarter ended September 30, 2022.

· SME Loans also registered robust growth with the second quarter ended September 30, 2023 disbursements at Rs. 872 crore vs. Rs. 201 crore in the second quarter ended September 30, 2022. During the quarter, the book size reached Rs. 2,413 crore, driven by increased geographical presence and concerted efforts towards digitization and channel expansion.

The Company maintained strong collection efficiency across Retail businesses through enhanced on-ground efforts, digital initiatives, and data analytics-based resource allocation.

Jasleen Royal Set to Enchant Bengaluru with the Heeriye India Tour at BYG Brewski Brewing Company

The heart of Bengaluru is set to pulsate with the rhythm of Jasleen Royal’s much-anticipated Heeriye India Tour, commencing at the lively BYG Brewski Brewing Company on October 27, 2023. Jasleen Royal, an illustrious Indian singer, songwriter, and composer, stands at the forefront of musical innovation, weaving a tapestry of emotions through her chart-topping hits. From the timeless allure of Din Shagna Da to the infectious energy of Nachde Ne Saare and the soulful resonance of Ranjha, Jasleen’s artistry has left an indelible mark on the soundscape of Indian music.

Notably, 2022 witnessed a historic milestone as Jasleen Royal became the first female music director to clinch the prestigious Filmfare Award for Best Music Director. Her contribution to the film Shershaah marked a paradigm shift, reinforcing her position as a trailblazer in the industry.

In their unwavering commitment to curating unforgettable experiences, BYG Brewski Brewing Company consistently brings top-tier artists to their stage. This collaboration with Jasleen Royal for the Heeriye India Tour is yet another testament to their dedication to providing patrons with extraordinary musical encounters. BYG Brewski has become synonymous with hosting stellar events, and this gig is a testament to its continuous endeavour to elevate the cultural landscape.

The chosen venue, BYG Brewski Brewing Company, isn’t merely a backdrop; it’s an integral part of the narrative. Nestled in the heart of Bengaluru, BYG Brewski offers more than an open-air setting. It’s an experience—an immersion into the city’s pulsating energy, complemented by an array of craft brews that promise to tantalize the taste buds, and a diverse menu crafted to satisfy every culinary desire.

Rahul, Partner at Impetus Live LLP, expressed his sentiments on selecting BYG Brewski as the venue, stating, “With a vibe that resonates with the heart of Bengaluru, every visitor at BYG Brewski will have an unforgettable musical experience with the melody queen Jasleen. It’s a soulful space where you will get to experience every note, every beat to create memories with home-brewed beers accompanied by soul-satisfying food.” The Heeriye India Tour is not just an event; it’s a nationwide extravaganza spanning 10 major cities. The inaugural night in Bengaluru is a testament to the city’s vibrant cultural tapestry and its love for music that transcends boundaries.

Jasleen Royal shared her excitement, stating, “I am thrilled and filled with gratitude for the incredible support I have received from my fans and media. With Heeriye receiving such an overwhelming response, this tour could not have come at a better time!”

As the sun sets on Bengaluru, the stage at BYG Brewski Brewing Company will light up with the magic of Jasleen Royal’s melodies. This musical journey promises not just entertainment but an immersion into a world where every note is a story and every beat is a heartbeat.

Be ready for an evening of enchantment—a night where the threads of music, culture, and camaraderie weave together into an unforgettable experience.

Details

Where: BYG Brewski Brewing Company, Bengaluru – Hennur

When: October 27, 2023 – Friday

Time: 5:00 PM Onwards

Rbl Bank Reports Net Profit Growth of 46 percent Yoy & 2 percent Qoq to 294 Crore

The Board of Directors of RBL Bank Limited approved the unaudited financial results for the quarter ended 30th Sep 2023 at its meeting held on Saturday, 21st Oct 2023.

Results Summary for Q2FY24

• Strong Operating Performance:

o     Net Profit grew 46% YOY & 2% QOQ to `294 crore

o     ROA of 1.00% vs 0.77% for Q2 FY23

o     Operating profit grew 43% YOY & 13% QOQ to `731 crore

o     Total Revenue grew 24% YOY and 3% QOQ to `2,179 crore

o     Net Interest Income grew 26% YOY and 4% QOQ to `1,475 crore; NIM was 5.54% vs 5.02% for Q2 FY23

o     Other Income grew 21% YOY and 3% QOQ to `704 crore

o     Cost to Income was 66.5% vs 69.3% for Q1 FY24 and 70.8% for Q2 FY23

o     During the quarter ended September 30, 2023, the Bank received income tax orders relating to matter under appeal resulting in write-back of tax provision for earlier years of `222.92 crore (pre-tax of `297.89 crore).

o     The Bank has prudently used this write-back of tax provision to

o     build contingent buffers of 100bps created on Credit Card & Microfinance Advances to prudently build reserves and strengthen the Balance Sheet; amounting to `252 crore

o     Modifying existing provisioning policy in credit cards to provide fully on NPA cases at 120 days as against the existing policy of 180 days. The quantum of additional provision taken by the Bank as a result of this change was  `48 crore in this quarter

o     In aggregate, the Bank took additional provision of Rs. 300 crore on account of above.

·          CASA and Deposits Growth:

o     CASA grew 12% YOY and 1% QOQ to `32,089 crore. CASA ratio at 35.7% vs. 36.2% as at 30^th Sep 2022

o     Total deposits grew 13% YOY and 5% QOQ to `89,780 crore

o    Retail Deposits (as per LCR definition) grew 19% YOY and 4% QOQ to `39,706 crore

·          Strong Advances Growth:

o     Net Advances book grew 21% YOY and 4% sequentially to `76,324 crore

o     Retail Advances book grew 35% YOY and 8% sequentially to `44,092 crore

o     Retail disbursement for Q2 FY 24 at `4,300 crore

o     Retail: Wholesale mix at 58:42

o     Housing loans grew 43% YOY; Rural vehicle finance grew 167% YOY

o     5.9 Lakhs credit cards issued in this quarter; Total cards outstanding at 4.8mn

o     Total customers at 14.31mn vs 11.77mn in Q2 FY23, an increase of 2.54mn

·          Well capitalized with sound liquidity:

o     Overall capital adequacy was 17.07% vs 16.68% for June 23; Common Equity Tier 1 ratio was 15.15% vs 15.05% for June 23

o     Average Liquidity Coverage Ratio at 142%

·          Asset quality:

o    Gross NPA ratio improved to 3.12% vs. 3.22% as at 30^th June 2023 and 3.80% as at 30^th Sep 2022, improved by 68 bps in a year

o    Net NPA ratio improved to 0.78% vs. 1.00% as at 30^th June 2023 and 1.26% as at 30^th Sep 2022, improved by 48 bps in a year

o    Provision Coverage Ratio including technical write offs was 88.4% vs 85.9% as at 30^th June 2023 and 84.3% as at 30^th Sep 2022, improved 410 bps in a year

o    Credit cost at 47bps in the normal course of business. Additional 43bps towards building contingency buffers of 100 bps on Credit Cards & Microfinance advances and accelerating provision on provisioning policy change in credit cards

o    The total provisions of the Bank including specific, general and contingent at 106% of GNPA

·          Network

o     As of 30^th September 2023, the Bank has 528 bank branches and 1,206 business correspondent branches, of which 296 are banking outlets. RBL Finserve Limited (“RBL Finserve”), a 100% subsidiary of the Bank, accounts for 882 business correspondent branches

Key Disclosures:

Reclass of Business Correspondent (BC) charges

In the quarter, the Bank has reclassed charges paid to its BC. Historically, the Bank used to net BC charges against the interest income line, with reason that BCs are paid from the interest income earned on the portfolio. In this quarter, the Bank has reclassed BC charges to the expense line for improved and comparable presentation. This has no impact on Operating Profit and Profit After Tax. The summary financials of the Bank pre and post reclass are shown below

Pre Reclass

Post Reclass

Write-back of tax provisions pertaining to earlier years

During the quarter ended September 30, 2023, the Bank received income tax orders relating to matter under appeal resulting in write-back of tax provision for earlier years of `222.92 crore (pre-tax of `297.89 crore). The Bank has prudently used this as follows:

1. Create contingent provisions in its microfinance and credit card segments at 1% of the total advances amounting to `252 crore
2. 2.Modifying provisioning policy in credit cards to provide fully on NPA cases at 120 days as against the existing policy of 180  The quantum of additional provision taken by the Bank as a result of this change was `48 crore

Key financials:

…