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Kotak Mahindra Bank Q2 net profit down 7%

Our Bureau Mumbai | Updated on October 26, 2021

Net interest margin for the second quarter of the fiscal was at 4.45 per cent from 4.5 per cent a year ago

Private sector lender Kotak Mahindra Bank reported a seven per cent drop on a year on year basis in its standalone net profit for the second quarter of the fiscal due to higher provisions.

For the quarter ended September 30, 2021, the bank’s standalone net profit was ₹2,032.01 as against ₹2,184.48 crore in the same period last fiscal.

Its net interest income increased three per cent to ₹4,021 crore in the second quarter of the fiscal from ₹3,897 crore a year ago.

Net interest margin for the second quarter of the fiscal was at 4.45 per cent from 4.5 per cent a year ago.

The bank’s other income increased by 26.5 per cent on an annual basis to ₹1,812.59 crore in the quarter under review.

Provisions jumped up by 27.2 per cent to ₹423.99 crore in the July to September 2021 quarter from ₹333.22 crore in the same period last fiscal.

The bank said it holds Covid-19 provisions of ₹1,279 crore which has not been utilised during the first half of the fiscal year.

As at September 30, 2021, gross non performing assets were at 3.19 per cent of gross advances as against 3.56 per cent as on June 30, 2021 and 2.55 per cent as on September 30, 2020.

Net NPA was 1.06 per cent of net advances at the end of the second quarter this fiscal versus 1.28 per cent at the end of the first quarter this fiscal and 0.64 per cent as on September 30, 2020.

In accordance with the Resolution Framework for Covid-19 related stress of individuals and small Businesses, the bank has implemented total restructuring of ₹495 crore (0.21 per cent of advances) as at September 30, 2021.

In addition, in accordance with the Resolution Framework for Covid-19 related stress of MSMEs, the bank has implemented total restructuring of ₹767 crore (0.33 per cent of advances) as at September 30, 2021.

Published on October 26, 2021

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