Kotak Mahindra Bank on Thursday reported a standalone net profit of R741.97 crore for the quarter ended June, up from the R189.78 crore reported for the same quarter last year. The rise in net profit can be attributed to improved operating performance and a fall in provisions. The private sector lender’s total income came in at R5,120.03 crore, up close to 12% year-on-year. Net interest income, the difference between interest earned and interest paid, stood at R1,919 crore, 20% higher compared with the corresponding quarter last year. The net interest margin (NIM) expanded by 19 basis points to 4.37%.
The bank’s provisions for the quarter, at Rs 179.51 crore, was 41% lower year-on-year. Gross non-performing assets (GNPAs) as percentage of total loans stood at 2.50%, up from 2.31% at the end of the June quarter last year, while the net NPA rose by 17 bps to 1.21%.
Assets outstanding under the SMA2 (special mention account 2) category stood at Rs 474 crore, representing 0.39% of the bank’s loan book. Speaking about the fall in provisions, joint managing director Dipak Gupta said last year’s high base was on account of stressed assets on ING Vysya Bank’s book that the bank had to provide for after the merger with the latter.
As on June 30, Kotak Mahindra Bank’s total loans stood at Rs 1.03 lakh crore, up 17% y-o-y, while total deposits increased 20% to R1.40 lakh crore. Current account deposits and savings account deposits (daily average) grew by 32% and 35%, respectively, to Rs 28,523 crore and Rs 18,575 crore. At the end of the quarter under review, CASA accounted for 37.4% of the bank’s total loan book.
“The major highlight of this quarter has been integration. We have finished the integration process in terms of technology and processes and we are expecting to get done with the integration of staff in another one or two quarters,” Gupta said.