Kotak Mahindra Bank on Friday reported a 19.72% rise in its standalone net profit to Rs 1,053.21 crore in the third quarter of FY18 compared to Rs 879.76 crore in the same period last fiscal. Net Interest Income (NII)—the difference between interest earned and interest expended—rose 16.75% to Rs 2,393.72 crore. The bank’s advances were up 23% Y-o-Y to Rs 1.59 lakh crore. The bank’s asset quality improved with its gross non-performing assets (NPAs) as a percentage of gross advances falling 11 basis points to 2.31% in the third quarter compared to 2.42% in the same period last year. On a sequential basis, gross NPAs fell by 16 basis points. The bank also indicated that there were no divergences between the provisioning it had made and as assessed by the Reserve Bank of India (RBI). Provisions and contingencies dropped marginally to Rs 212.77 crore compared to Rs 216.53 crore in the previous quarter. Net NPAs as a percentage of net advances rose by two basis points in the third quarter to 1.09% on a y-o-y basis. On a sequential basis, net NPAs improved considerably having reduced by 17 basis points. The bank stated in a press release that as on December 31, restructured loans considered standard stood at Rs 67 crore and (Special Mention Account) SMA2 outstanding was at Rs 308 crore.
The bank’s Net Interest Margin (NIM) compressed to 4.2%, against 4.5% in the same period last year. Kotak Bank’s total income grew 12.48% to Rs 6,049.02 crore in the third quarter compared to the corresponding period of the previous year, while operating profits rose 19.14% to Rs 1,820.05 crore. The bank’s capital adequacy ratio, including unaudited profits as per Basel III, as on December 31, 2017 stood at 18.7% and tier-1 ratio at 18%.