The Mumbai-based lender’s net profit grew by 25.6% from last year to ₹4,123 crore from ₹3,282 crore earlier. Profitability was aided by a ₹300 crore-plus jump in other income, which stood at ₹3,338.2 crore from ₹3,080 crore in the year-ago period. A CNBC-TV18 poll had pegged the profit figure to be ₹3,910 crore.
Net Interest Income (NII) or core income for the lender stood at ₹7,928 crore, a growth of 9.2% from last year, but marginally lower than the CNBC-TV18 poll estimate of ₹8,058 crore.
Asset quality for the lender remained largely stable with gross NPA at 1.18% from 1.2% in March, while Net NPA stood at 0.27% from 0.25% in the previous quarter. In absolute terms, Kotak Mahindra Bank’s Gross NPA stood at ₹6,122 crore from ₹6,018 crore earlier, while net NPA stood at ₹1,357.6 crore from ₹1,262.5 crore last quarter.
Provisions for the quarter increased by ₹150 crore from March to ₹668 crore, but were lower compared to the ₹1,208 crore figure reported last year.
Kotak Mahindra Bank’s Net Interest Margins (NIMs) for the quarter stood at 4.53%, a 12 basis points contraction from 4.65% in the previous year and 14 basis points contraction from the 4.67% it reported during the March quarter. Analysts were also expecting the lender’s margins to contract by 14 basis points sequentially.
Kotak Mahindra Bank’s net advances for the quarter stood at ₹5.12 lakh crore, up 15% from last year, while deposits at the end of the quarter stood at ₹5.72 lakh crore, a growth of 12% on a year-on-year basis.
Average current deposits were up 15% year-on-year, fixed rate savings deposits grew 16%, while average term deposits were up 14% from last year.
Credit-to-Deposit Ratio for Kotak Mahindra Bank stood at 89.4% from 86.7% last year.
The lender reported a marginal rise in fresh slippages on a sequential basis to ₹1,321 crore from ₹1,018 crore in the March quarter.
Write-offs during the quarter stood at ₹652 crore from ₹640 crore sequentially and ₹759 crore last year.
Upgradations and recoveries stood at ₹565 crore from ₹680 crore last quarter and ₹549 crore last year.
Shares of Kotak Mahindra Bank ended at the highest point of the day on Friday, surging 3.6% to ₹390.7. The stock is still down 12% on a year-on-year basis and trades below its 52-week high of ₹453.2.
