MUMBAI – Kotak Mahindra Bank on Saturday reported a nearly 8% year-on-year (YoY) growth in net profit for the quarter ended December to Rs 3,005 crore, but the figure was lower than the estimated Rs 3,250 crore.
Net interest income, the difference between interest earned and interest expended, rose nearly 16% YoY to Rs 6,553 crore.
Provisions and contingencies surged to Rs 579 crore from Rs 149 crore a year ago.
Pre-provision operating profit increased 19% YoY to Rs 4,566.21 crore but declined nearly 1% sequentially.
On the asset quality front, the gross non-performing assets as a percentage of total loans was 1.73% as of December end compared to 1.90% a year ago, and 1.72% a quarter ago.
The net non-performing assets ratio was 0.34% as of December end, compared to 0.43% a year ago, and 0.37% a quarter ago.
During the quarter, Kotak Bank also made a provision of Rs 143 crore for investments into the Alternate Investment Fund (AIF). Net interest margin (NIM) for the quarter was 5.22%, flat sequentially but lower than 5.47% a year ago.
Fees and services revenue increased 26% on year to Rs 2,144 crore.
The capital adequacy ratio of the bank, as per Basel III, was 21.2% as of December end. The provision coverage ratio stood at 80.6%.
Total advances were at Rs 3.72 lakh crore as of December end, 19% higher from the last year. Customer assets, which comprises advances and credit substitutes, were Rs 4 lakh crore, up 17% YoY.
Unsecured retail loans as a percentage of the net advances stood at 11.6% as of December end, compared to 9.3% a year ago.
CASA ratio as of December end stood at 47.7%. Average current deposits grew to Rs 59,337 crore from Rs 56,372 crore a year ago. Average savings deposits grew to Rs 1.23 lakh crore from Rs 1.18 lakh crore a year ago.
For the nine months ended December, the private sector lender’s net profit rose 30% YoY to
Rs 9,648 crore. Net interest income increased 24% to Rs 19,084 crore.
Post the earnings announcement, shares of the bank were trading nearly 2% up on the National Stock Exchange at Rs 1,801.35.
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