Kotak Mahindra Bank said on Tuesday its standalone net profit for the September quarter rose 43% year-on-year to Rs 813.3 crore. The increase was helped by a 19% growth in net interest income which stood at Rs 1,995 crore. The net profit for the previous quarter stood at about Rs 742 crore.
On a standalone basis, net interest margin for the quarter rose to 4.47% from 4.30% a year ago. The management said it expects the number to stay within the range of 4% to 4.5 % for the rest of the year.
“As integration with ING more or less stabilises, you will see costs further come down. On the income side, it really depends on growth and the NIM. However, it is really difficult to improve NIMs beyond this – as we are already at the pre-merger NIM levels,” said Dipak Gupta, joint managing director, Kotak Mahindra Bank.
Pre-provisioning profit for the quarter stood at Rs 1,440.08 crore, compared with Rs 1,044.76 crore a year ago. Pre-provisioning profit for the previous quarter stood at Rs 1,315.03 crore.
Advances as on September 30, 2016, were up 13% Y-o-Y to Rs 126,015 crore. CASA stood at 39%, with average savings deposits growing by 35% to Rs 30,678 crore and average current account deposits growing by 28% to Rs 19,273 crore.
The bank’s gross non-performing assets (NPAs) stood at Rs 3,180.66 crore, compared with Rs 3,058.81 crore in the previous quarter and Rs 2,655.38 crore a year ago. The ratio of gross NPAs to gross advances stood at 2.49% in the second quarter, compared with 2.50% in the previous quarter and 2.35% a year ago.
The ratio of net NPAs to net advances stood at 1.20% in the second quarter, compared with 1.21% in the previous quarter and 1.05% a year ago.