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Kotak Mahindra Bank approves issuance of NCDs worth 2,000 cr

Kotak Mahindra Bank, it said, has become the first private bank to go live in the credit card category on Bharat BillPay ecosystem. Photo:pradeep gaur/mintPremium
Kotak Mahindra Bank, it said, has become the first private bank to go live in the credit card category on Bharat BillPay ecosystem. Photo:pradeep gaur/mint

The bank has also approved the proposal for raising funds by the way of the issuance of unsecured redeemable NCDs or bonds, or other debt securities on a private placement basis, for an amount up to 7,000 crore during the next financial year

Private lender Kotak Mahindra Bank on Saturday said that the bank's board has approved issuance of listed, redeemable, unsecured non-convertible debentures on a private placement basis worth   2,000 crore in FY 2022-23.

“Approved issuance of listed, redeemable, unsecured non-convertible debentures (“NCDs"), in one or more tranches / series, on a private placement basis, for an amount not exceeding Rs. 2,000 crore, during the remaining period of FY 2022-23 under the prevailing Members’ approval," said Kotak Mahindra Bank in its regulatory filing.

“In this regard, the Board has authorised the Share Transfer and Other Matters Committee to, inter alia, finalise the structure and the terms and conditions of the issue (including the timing of the issue, tenure, coupon/interest rate, schedule of re-payment / interest/coupon rate, security, any right/interest/privileges attached with the NCDs, etc.)," it added.

The bank has also approved the proposal for raising funds by the way of the issuance of unsecured redeemable NCDs or bonds, or other debt securities on a private placement basis, for an amount up to 7,000 crore in one or more tranches during the next financial year, i.e, FY23-24 post the necessary approval.

"Approved the proposal for seeking Members’ consent for raising funds by way of issuance of Unsecured, Redeemable, Non-Convertible Debentures / Bonds / other Debt Securities, on private placement basis, for an amount up to Rs. 7,000 crore, in one or more tranches, during FY 2023-24, subject to any other approvals as may be necessary. In this regard, the Bank will seek Members’ approval at an appropriate time," said Kotak Mahindra Bank in its regulatory filing.

Kotak Mahindra Bank garnered a standalone net profit of 2,791.88 crore in Q3 of the current fiscal FY23 compared to 2,131 .36 crore a year ago same quarter, registering a growth of a whopping 30.99% year-on-year. Kotak's asset quality improved with gross NPA declining sharply, however, provisions increased during the quarter.

Net interest income (NII) which is the difference between interest earned and interest expended, came in at 5,653 crore in Q3 of FY23. The latest quarter's NII climbed by 30.43% from 4,334 crore in Q3FY22 and was up by 10.86% from 5,099 crore in Q2FY23.

 

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