Kotak Mahindra Bank on Wednesday reported a 22.26% rise in its standalone net profits at Rs 994.31 crore in the second quarter of FY18 compared to Rs 813.29 crore in the same period last fiscal. Net interest income (NII) – the difference between interest earned and interest expended – rose 15.9% to Rs 2,312.66 crore on a year-on-year basis. The bank’s asset quality improved with its gross non-performing assets (NPAs) as a percentage of gross advances coming in a tad lower at 2.47% in the second quarter compared to 2.49% in the same period last year. On a sequential basis, gross NPAs fell by 11 basis points. Net NPAs as a percentage of net advances rose by six basis points in the second quarter to 1.26% on a Y-o-Y basis while it remained stable on a sequential basis.
The bank stated that it has exposure to six accounts in the second list identified by the Reserve Bank of India for insolvency proceedings. The lender made provisions and contingencies of Rs 216.53 crore compared to Rs 197.76 crore in the same period last year. It pointed out in the press release that as on September 30, 2017, restructured loans considered standard were down to Rs 65 crore, i.e. 0.04% of net advances. As on September 30, 2017, the bank’s SMA2 outstanding stood at Rs 250 crore – 0.16% of net advances.
The bank’s net interest margin (NIM) stood at 4.33%, against 4.47% in the same period last year. Kotak Mahindra Bank saw a 9% rise in its total income at Rs 5,714.02 crore in the second quarter compared to last year. Operating profits rose 20% to Rs 1,724.81 crore. Capital adequacy ratio, including unaudited profits as per Basel- III, as on September 30, 2017, stood at 19.4% and tier-1 ratio stood at 18.7%. The bank’s advances as on September 30, 2017, were up 21% y-o-y to Rs 1.52 lakh crore.