NSE Symbol: KOTAKBANK | BSE Code: 500247
Kotak Mahindra Bank offers retail as well as corporate customers with a wide range of banking products and financial services. Besides, the bank provides investment products like Mutual Funds, Life Insurance, retailing of gold coins and bars, etc. Based in Mumbai, the bank has 1,375 branches across 700 locations and 2,171 ATMs, as on 31st December 2017.
Mr. Uday Kotak - Executive Chairman and MD
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 MD at Kotak Mahindra Bank Limited (India and UK). He is the Principal Founder and Promoter of Kotak Mahindra Finance Ltd. Mr. Kotak attained a Bachelor's degree in Commerce and an M.B.A. from Jamnalal Bajaj Institute of Management Studies, Mumbai University.
Kotak Mahindra Bank was established in 1985 under the name Kotak Capital Management Finance Ltd. The bank obtained the license of operating business on February 11, 1986. Mr. Harish Mahindra and Mr. Anand Mahindra soon joined the existing promoters. The bank entered the lease and hired company 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 NBFC company which was converted into a commercial bank. The company received the 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.
The stocks of Kotak Mahindra can be traded on the two major stock exchanges in the country - NSE and BSE. The codes for the same are mentioned below.
Kotak Mahindra Bank stocks form a part of different indices, and they are mentioned below:
The net profit of company reported an increase of 20% year-on-year (y-oy)in the third-quarter at Rs.1,053 crore as compared to Rs.880 crore in the quarter, a year ago. Kotak Mahindra's consolidated net profit for the third quarter in Fiscal 2018 increased 28% at Rs.1,624 cr from Rs.1,267 cr in the third quarter of FY17.
The net interest on the company's income was up 17% to Rs.2,394 crore. The net benefit 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, the 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 savings account ratio (CASA) as of December 31, 2017, stood at 46.7% compared to 42% as of December 31, 2016. The total customers of the bank are around 12 million as of December 31, 2017. Kotak Mahindra Bank is focusing on digital payments. Transactions for the bank on mobile platform grew by 120% concerning volume in Q3FY18 vis a vis a year ago. The payment gateway transactions for the month of December 2017 increased by 115% regarding volume and by 64% for value.
The opening price of the stock on January 1, 2018, was Rs.1,011.85 while the closing price by month end was Rs.1,084. At the beginning of February, the cost of the share was Rs.1,105, and by the end of February, it was Rs.1,090.
The stock price didn't change drastically throughout March and was Rs. 1044 by the end of the month.
The market capitalization of the bank as of March 2018, is around Rs.201,007.80 crores.
Kotak Mahindra Bank has seen an inclination in the monthly profits and number of customers. The bank has also seen a rise 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 long-term could be a good option. However, it is advised to do thorough research and take advice from a financial expert before investing in any stocks.
A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.
Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.
The Bombay Stock Exchange, more popular as BSE, is the first and oldest stock exchange in Asia. Premchand Roychand, an influential stockbroker and businessman, ventured into this ambitious journey in 1855 with around 20 associates. They organized meetings at several outdoor locations before finally finding a permanent place in Mumbaiâ€™s Dalal Street. BSE was thus formally established in 1875. The exchange chiefly facilitated floor trading for a century before adopting an automated digital platform in 1995. The company has grown enormously ever since and has joined the United Nations Sustainable Stock Exchange as a partner exchange in 2012. BSE has also opened India's first international exchange, known as INX, in 2016.
NSE was mainly a Government of India initiative that aspired to bring transparency to the Indian capital market. A group of leading Indian financial institutions, upon the government's instruction, joined their resources to set up the exchange. Established in 1992, NSE was the first demutualized electronic exchange of India. It was the first exchange in India that operated on an entirely automated, digital screen-based electronic trading system. The platform offered an easy trading facility and connected the investor base of the entire country. NSE has immensely expanded ever since and currently extends its services to various segments, such as equity derivatives, trading, debt and currency derivatives, clearing and settlement services in equity, etc.
Launched on 1st April 1996, the NIFTY is NSE's flagship index that helps investment managers in tracking the behavior of a portfolio of certain companies. The list includes 50 companies from 12 different sectors out of the 1600 companies registered under the NSE. These are the 50 blue-chip companies owning the largest and most liquid Indian securities. Therefore, it is popularly referred to as the Nifty 50 and the index symbolizes the weighted average of the stock value of these 50 companies. The Nifty exposes investors to the Indian market through one efficient portfolio. The IISL or India Index Services and Products is a specialized company that focuses on an index as a core product and it owns as well as manages the Nifty.
Just like NSE's Nifty 50, BSE's stock market index is called Sensex. The word 'Sensex' is a combination of the words 'Sensitive' and 'Index.' It is also known by the names of BSE 30 and S&P BSE SENSEX. It comprises of 30 well-established and financially thriving companies among the ones listed on BSE. These 30 companies represent diverse industrial sectors of the Indian economy and have the largest as well as most actively traded stocks. SENSEX is extensively reported in national and international markets, through both print and electronic media. It has a scientifically designed indexing system which is based on internationally accepted construction and review methodologies. Since September 2003, a free-float market capitalization methodology is applied to calculate Sensex.