Kotak Mahindra Bank on Friday reported a 15% year-on-year rise in its net profit for the quarter ended December at Rs 2,131 crore, on account of steady net interest income (NII) growth and write-back of provisions. On a consolidated basis, the bank’s bottomline rose 31% on year to Rs 3,403 crore.
During October-December, Kotak Mahindra Bank’s NII (the difference between interest earned and expended) grew 12% on year to Rs 4,334 crore. The bank’s net interest margin grew to 4.62% in the reporting quarter from 4.36% a year ago.
Total advances stood at Rs 2.52 lakh crore as of December-end, up 18% on year and 8% on a sequential basis. Home loans and loans against property accounted for 25% of the bank’s total customer assets and grew 38% on a yearly basis, while corporate banking advances rose 8% on year to Rs 68,095 crore.
Further, the bank’s deposits rose 15% on year to Rs 3.05 lakh crore as on December 31. The bank’s low-cost current account and savings account ratio stood at 59.9% as of December-end, higher than 58.9% a year ago.
On the asset quality front, Kotak Mahindra Bank’s gross non-performing asset ratio (GNPA) improved to 2.71% as of December-end from 3.27% a year ago and 3.19% last quarter. Net non-performing asset ratio stood at 0.79% as on December 31, lower than 1.24% a year ago and 1.06% as of September-end. The bank saw fresh slippages of Rs 750 crore and recoveries and upgrades of Rs 1,086 crore in the reporting quarter.
During October-December, Kotak Mahindra Bank wrote back Covid-19 provisions amounting to Rs 131 crore as against Rs 424 crore of provisions made during the previous year. The lender continues to hold Rs 1,000 crore of more Covid-19 related provisions on its book and as of December-end, its total provisions including specific, standard and Covid-19 provisions stood at Rs 7,269 crore. The bank’s capital adequacy ratio stood at 23.3% as of December-end, of which tier-I capital stood at 22.4%.
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