Kotak Mahindra Bank turned in a strong performance in the December quarter of this fiscal (Q3 FY17). Net profit rose 38.6 per cent to ₹880 crore (₹635 crore in the year-ago period) on higher net interest income and other income on standalone basis.

Net interest income (NII) grew 16 per cent year-on-year (y-o-y) to ₹2,050 crore while other income grew 26 per cent to ₹910 crore. The bank also grew its net interest margin 15 basis points to 4.49 per cent.

Balance sheet

The bank’s total assets grew 11 per cent y-o-y to over ₹2.01 lakh crore. Deposits rose 14 per cent to over ₹1.49 lakh crore.

Of this, low-cost current account, savings account (CASA) deposits contributed 42 per cent (35.3 per cent in the year-ago period) primarily due to demonetisation.

Advances grew 12 per cent to over ₹1.29 lakh crore with the ratio of retail to corporate loans at 40:60.

Asset quality

Gross non-performing assets (NPA) to gross advances rose 12 basis points to 2.42 per cent while net NPA rose 11 bps to 1.07 per cent.

Capital adequacy ratio of the bank, according to Basel-III norms, rose 78 bps to 15.99 per cent. During the quarter, the bank did not undertake any corporate/strategic debt restructuring, transfer any loans to asset reconstruction companies, convert any balance sheet item to off-balance sheet, give out any 5/25 loan, or rectify any standard asset.

At the end of the quarter, the bank had a network of 1,348 branches and 2,051 ATMs.