Asset quality improves as Kotak Bank reports 15% rise in Q2 profit

By: |
Mumbai | Published: October 25, 2018 3:29:57 AM

Kotak Mahindra Bank on Wednesday reported a 15% year-on-year (y-o-y) rise in its standalone net profit to Rs 1,142 crore for the quarter ended September because of a 16.3% y-o-y growth in the net interest income (NII) to Rs 2,689 crore.

Kotak Mahindra Bank, Kotak Mahindra Bank Q2 profit,  NPA, CASA, Karur Vysya BankThe bank said it was able to meet its target of doubling the customer base between March 2017 and September 2018, with its digital product 811 contributing to a bulk of it.

Kotak Mahindra Bank on Wednesday reported a 15% year-on-year (y-o-y) rise in its standalone net profit to Rs 1,142 crore for the quarter ended September because of a 16.3% y-o-y growth in the net interest income (NII) to Rs 2,689 crore. NII is the difference between interest earned and interest paid by a bank. The net interest margin (NIM) fell 10 basis points (bps) from the end of June to 4.2%. Provisions at the bank rose 63% from the year-ago period to Rs 354 crore. The asset quality saw an improvement, with gross non-performing assets (NPAs) falling 2 bps from the end of June to 2.15% of the loan book. Net NPAs were down 5 bps sequentially at 0.81%.

As on September 30, 2018, special mention account (SMA)-2 book, comprised of loans where repayments have been overdue for between 61 and 90 days, stood at Rs 165 crore, or 0.09% of net advances. Total advances grew 21% y-o-y to Rs 1.85 lakh crore by the end of September.

Average savings deposits grew 43% to Rs 68,630 crore for the quarter under review, compared with Rs 48,127 crore during the year-ago period. Average current account deposits grew 22% to Rs 27,807 crore for the quarter, against `22,734 crore in the same period a year ago. The current account savings account (CASA) ratio as on September 30, 2018 stood at 50.2%, up from 47.8% as on September 30, 2017.

The bank said it was able to meet its target of doubling the customer base between March 2017 and September 2018, with its digital product 811 contributing to a bulk of it. At present, the bank has more than 16 million customers, up from 8 million at the time of the launch of the product.

KVB net profit rises 11%

Karur Vysya Bank (KVB) has reported a net profit of Rs 83.74 crore for the quarter ended September 30, compared with Rs 75.65 crore in the same quarter last fiscal, registering a growth of 10.69%. The total income of the bank stood at Rs 1632 crore, retaining the same level reported in the year-ago period. Gross NPA of the bank was at Rs 3,707 crore (7.7%) and the net NPA stood at Rs 2,052 crore (4.41%). The provision coverage ratio was at 58.5%, the bank said in a statement. Net interest income for the quarter improved to Rs 579 crore from Rs 555 crore, registering a growth of 4.32%. Non-interest income was at Rs 176 crore. Core fee income grew by `8 crore to Rs 157 crore.

(With inputs from fe Bureau, Chennai)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Bharti Airtel m-cap zooms Rs 12,000 crore as 6 biggies pour $1.25 billion into Africa unit; stock soars 15%
2Exchange rate movements raise vulnerability of emerging market firms, says BIS report
3Three stock market tips from legendary investor Jack Bogle to create long-term wealth