Kotak Mahindra Bank net up 31%; asset quality improves, NIMs flat
The bank’s net interest margin (NIMs) was flat sequentially at 4.6% “NIMs will remain at the same level in the fourth quarters as well,” Dipak Gupta, joint MD, KMB, said. Other income grew 8% y-o-y to R304.86 crore and total income was up 25% y-o-y to R2,399.44 crore.
The asset quality of the private sector bank improved with gross net performing assets (NPAs) sequentially falling by 15 basis points to 1.46%, and net NPAs falling to 0.64% in the October-December period from 0.75% in the July-September period.
The bank restructured Rs 9.7 crore worth assets in the quarter while it had restructured assets worth R25.1 crore in the corresponding quarter last year. Provisions rose to R42.36 crore, compared with R30.72 crore last year.
Total advances stood at R50,245 crore, a 26% y-o-y rise. The bank’s advances to companies grew 24% y-o-y, while its auto loan advances grew 25%. Meanwhile, commercial vehicles and construction equipment segment grew only by 7%.
“There has been very little project financing requirement and the corporate loan book growth has mostly come from working capital,” said Gupta, adding that most of the loan growth came from wholesale and agriculture segments. He also said that the commercial vehicle and construction equipment segment was still under stress. The bank is targeting a credit growth
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