Kotak Mahindra Bank Q2 net jumps 27 per cent to Rs 2,184 crore

NEW DELHI:  Kotak Mahindra Bank, the country’s third largest private sector lender by market capitalisation, reported profit at Rs 2,184.5 crore in September ended quarter, registering a 26.7 per cent growth year-on-year, aided by lower provisions. Rise in pre-provision operating profit, NII and other income also boosted profitability.

Net interest income (NII) — the difference between interest earned and interest expended — increased 16.8 per cent to Rs 3,913.2 crore in July-September quarter compared to corresponding period of last fiscal. Provisions and contingencies fell 9.6 percent to Rs 368.59 crore compared to year-ago period, while the sequential fall was 61.7 percent.

Provisions and contingencies fell 9.6 per cent to Rs 368.59 crore compared to year-ago period, while the sequential fall was 61.7 per cent. COVID-19 related provisions as at September 2020 stood at Rs 1,279 crore (0.62 per cent of net advances). Non-specific provisions towards advances (including standard and COVID provisions) is at 177 per cent of the net NPA of the bank,” the company added.

On the asset quality front, gross non-performing assets (NPAs) as a percentage of gross advances fell 15 bps sequentially to 2.55 per cent and net NPA was down 23 bps QoQ to 0.64 per cent, partly due to Supreme Court’s interim order on September 3 which directed that accounts which were not declared as NPA till August 31, 2020 shall not be declared as NPA till further orders.

Denies takeover talks with IndusInd Bank

The Uday Kotak-promoted bank on Monday said they were open to M&A opportunities for growth but junked Bloomberg reports that claimed Kotak Mahindra Bank is exploring a takeover of smaller rival IndusInd Bank.