Net interest income (NII) rose 23% y-o-y in Q1FY19 to `3,173 crore. Net interest margins (NIM) improved 21 basis points (bps) y-o-y and one basis point sequentially to 4.49%.
Private lender Kotak Mahindra Bank on Monday posted a 33% year-on-year (y-o-y) increase in the standalone net profit to Rs 1,360 crore in the June quarter, led by an 18% y-o-y growth in operating profit and a 32% y-o-y drop in provisions.
Net interest income (NII) rose 23% y-o-y in Q1FY19 to Rs 3,173 crore. Net interest margins (NIM) improved 21 basis points (bps) y-o-y and one basis point sequentially to 4.49%. Dipak Gupta, joint MD, said the reduced weighted average cost of deposits to 5.51% in Q1FY20 from 5.61% last year and 5.66% in the March quarter helped the margins. The current account saving account (CASA) ratio, which indicates the share of low-cost deposits with a bank, improved to 50.7% compared to 50.3% a year ago.
The other income also rose 12%, leading to a 20% y-o-y growth in the total income to Rs 7,944 crore. Total advances grew 18% y-o-y to Rs 2.08 lakh crore, against Rs 1.76 lakh crore a year ago. Jaimin Bhatt, president and group CFO, said, “Most of the loan growth in the June quarter came from the consumers and our focus remains on the small-ticket size loans.”
The gross non-performing asset ratio rose 5 bps sequentially to 2.19% while the net NPA ratio fell 2 bps sequentially to 0.73% as the provision coverage ratio went up to 67% from 65% in the previous quarter. However, special mention account-2 rose to 0.16% of the loan book from 0.07% in the previous quarter. Bhatt said the bank curtailed its exposure to sectors like NBFCs and real estate. The bank made provisions of Rs 316 crore in Q1, down 32% y-o-y as provisions for investments were reduced to Rs 29 crore from Rs 203 crore a year ago.
Deposits rose 21% y-o-y to Rs 78,654 crore led by a 23% y-o-y growth in current account deposits and a 21% y-o-y growth in saving account deposits. CASA and term deposits constituted 82% of total deposits.