Kotak Mahindra Bank Q4 Update: Loan Growth Lowest In Eight Quarters But Deposits Jump

Kotak Mahindra Bank Ltd.’s loan growth fell to its lowest in at least eight quarters even as deposits rose in the three months ended March.

The billionaire Uday Kotak-led lender’s advances grew 6.7 percent year-on-year, the slowest pace since at least the quarter ended June 2018, to Rs 2.19 lakh crore, according to its exchange filing. The private sector bank’s deposits rose 16.4 percent over last year to Rs 2.62 lakh crore in the January-March 2020 period.

Sequentially, advances grew 1.3 percent and deposits rose 9.8 percent.

The rise in bank’s deposits was mainly led by the growth in savings and current accounts. Savings deposits grew 31 percent year-on-year and 14 percent over the preceding quarter to Rs 106,400 crore, while current deposits increased 11 percent yearly and 17 percent sequentially to Rs 43,000 crore, according to the filing.

The lender, in a concall held last week, had said it witnessed an increase in deposits after peer Yes Bank Ltd. was placed under a Reserve Bank of India-advised moratorium.

Also Read: Yes Bank Rescue: Yes And No

Other Highlights Of Kotak Mahindra Bank’s Q4 Update

• Total customer deposits grew 19.6 percent year-on-year Rs 258,500 crore.
• Certificate of deposits stood at Rs 4,400 crore compared to Rs 9,731 crore last year.
• Total CASA ratio rose to 56.2 percent, a sequential growth of 250 basis points.

Also Read: IndusInd Bank Reviews Large Corporate Lending Strategy

The lender, in the concall, said it expected higher slippages if the lockdown to combat the coronavirus pandemic extends for three months, and it was concerned about the retail unsecured business.

Also Read: HDFC Bank’s Deposit Base Grows Amid Erosion At RBL Bank, IndusInd Bank

Kotak Mahindra Bank had missed its loan growth estimates for the third quarter and had lowered its guidance to low double digits for the financial year ended March 2020 against its earlier guidance of mid-teens.