Kotak Mahindra Bank approves proposal to raise ₹10,000 crore via NCDs

Kotak Mahindra Bank's board on Saturday approved the proposal to raise ₹10,000 crore through the issuance of unsecured, redeemable, non-convertible debentures (NCDs) on a private placement basis. The funds can be raised in one or more tranches and are subject to the approval of the members of the bank.

"Pursuant to Regulation 30 and Regulation 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), this is to inform you that the Board of Directors of Kotak Mahindra Bank Limited ("Bank") have, at their meeting held today, inter alia, approved a proposal to enable the Board of Directors of the Bank to raise funds by way of issuance of Unsecured, Redeemable, Non-Convertible Debentures, on a private placement basis, for an amount up to Rs. 10,000 crore, in one or more tranches/series, during FY 2024-25, subject to the approval of the members of the Bank and any other approvals as may be necessary," Kotak Mahindra Bank said in a regulatory filing.

Kotak Mahindra Bank Q3FY24 results

The fundraising comes as Kotak Mahindra Bank released its Q3FY24 results on Saturday and reported a 6.75% year-on-year (YoY) increase in its net profit. The profit after tax (PAT) of Kotak Mahindra Bank stood at ₹4,264.78 crore during the quarter ending December 2023 as compared to ₹3,995.05 crore in a year ago period.

Sequentially, the net profit of the Kotak Mahindra Bank declined from ₹4,461.04 crore recorded during the quarter ending September 2023.

During the October to December 2023 quarter, the total income of the bank recorded a 31% YoY jump and stood at ₹24,083.15 crore compared to ₹18,371.64 crore in the third quarter of the previous financial year.

Sequentially, the total income of the Kotak Mahindra Bank jumped from ₹21,559.52 crore recorded during the quarter ending September 2023.