Asset quality improved in September quarter sequentially with gross non-performing assets (as a percentage of gross advances) falling at 2.15 percent against 2.17 percent.
Private sector lender Kotak Mahindra Bank has reported 14.82 percent on year growth in second quarter profit to Rs 1,141.65 crore, driven by NII, operating and other income. However, higher provisions YoY limited profitability.
Profit in corresponding period last fiscal stood at Rs 994.31 crore.
Net interest income during the quarter grew by 16.28 percent to Rs 2,689.1 crore with loan growth at 21.21 percent YoY, the bank said.
The bank registered a whopping 27.77 on year growth in retail loans at Rs 78,167 crore, which contributed 42 percent to total advances in Q2, and corporate loans increased 16.82 percent YoY to Rs 1,06,773 crore.
Deposits in the quarter ended September 2018 increased 24.24 percent year-on-year to Rs 2.06 lakh crore, it said.
Asset quality improved in September quarter sequentially with gross non-performing assets (as a percentage of gross advances) falling at 2.15 percent against 2.17 percent and net NPA down at 0.81 percent against 0.86 percent.
Kotak Bank said provisions and contingencies increased 63.40 percent year-on-year to Rs 353.8 crore but declined 24.66 percent sequentially. Special Mention Accounts-2 outstanding stood at Rs 165 crore for the quarter, which was 0.09 percent of net advances, it added.
The private sector lender registered a healthy 26.35 percent on year growth in other income (non-interest income) at Rs 1,205.27 crore with 26 percent growth in fees & services business. Operating profit grew by 21.46 percent YoY to Rs 2,095 crore for the quarter ended September 2018.
Consolidated profit during the quarter grew by 21.3 percent year-on-year to Rs 1,747.4 crore and net interest income increased by 14.7 percent to Rs 3,538.4 crore.
