Kotak Mahindra Bank net rises 51% to Rs 1,724 crore

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Published: October 23, 2019 12:37:44 AM

The bank has launched its first overseas branch at Dubai International Financial Centre in the quarter. Following the announcement of the results, shares of Kotak Mahindra Bank closed 0.83% higher at Rs 1,628.90 on the BSE.

At the end of the September quarter, the share of CASA (current account savings account) deposits stood at 53.6%.

Private lender Kotak Mahindra Bank on Tuesday reported a 51% year-on-year rise in its net profit to Rs 1,724.48 crore for the quarter ended September, on the back of a 25% rise in its net interest income and cut in corporate taxes. Net interest income (NII) — the difference between interest earned and interest expended — saw an increase of 25% year-on-year to Rs 3,350 crore. Net interest margin (NIM) stood at 4.61%—higher by 42 basis points y-o-y.

Gross non-performing assets (NPAs) increased 15 bps sequentially to 2.17%, while net NPAs inched up 11 bps to 0.82%. Provisions increased 35% sequentially to Rs 473.10 crore in Q2FY20.

President and Group chief financial officer Jaimin Bhatt said the slippages for H1 stood at Rs 1,800 crore, which is 1.7% of the advances. For the quarter, the figure stands at roughly Rs 1,000 crore, he added. He said the uptick in NPAs were across all segments. The bank’s advances increased 15% to rS 2.13 lakh crore. Average savings deposits grew by 20% to Rs 80,425 crore, and average current account deposits grew 22% to Rs 33,216 crore.

Joint managing director Dipak Gupta said the bank’s CASA had been growing continuously. “Our whole focus has been on liabilities to achieve low granular deposits, which reflects on the NIM,” he said. At the end of the September quarter, the share of CASA (current account savings account) deposits stood at 53.6%. The bank’s capital adequacy ratio stood at 18.2% for Q2 and tier-I ratio came in at 17.6%.

The bank has launched its first overseas branch at Dubai International Financial Centre in the quarter. Following the announcement of the results, shares of Kotak Mahindra Bank closed 0.83% higher at Rs 1,628.90 on the BSE.

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