Kotak Mahindra Bank Q1 PAT up 43% aided by other income

Moneycontrol Bureau

Private sector lender Kotak Mahindra Bank's first quarter (April-June) standalone profit after tax (PAT) rose by a forecast-beating 43 percent year-on-year to Rs 403 crore, driven by a spurt in the other income that nearly doubled to Rs 462 crore from Rs 241 a year ago.

Standalone net interest income (NII or the difference between ) grew by 27 percent Y-o-Y to Rs 917 crore, which was slightly lower than expectations.

Analysts on an average had expected it to report standalone net profit at Rs 388 crore and NII at Rs 925 crore.

During the quarter, the bank expanded its loans by 19 percent y-o-y to around Rs 50,500 crore. The gross non-performing asset (NPA) ratio rose to 1.95 percent from 1.60 percent in the corresponding quarter of the previous year. Net NPA ratio stood at 0.98 percent as against 0.80 percent a year back.

Provisions and contingencies shot up five times from Rs 34 crore to Rs 169 crore y-o-y.

Deposits grew 26 percent to around Rs 52,500 crore while savings deposits expanded at a faster pace by 45 percent to about Rs 8,050 crore. The bank is offering a maximum 7 percent rate of interest in savings account deposits. The Reserve Bank of India had penalised the lender a sum of Rs 1.501 crore for violating Know Your Customer (KYC) norms.

Meanwhile, the consolidated net profit, which included profit from its subsidiaries, increased 41.4 percent y-o-y to Rs 627 crore and NII grew by 25 percent to Rs 1,374 crore during the three-month period.

During the quarter, the net interest margin (NIM) improved marginally to 4.8 percent as against 4.7 percent in previous quarter.

Among subsidiaries, Kotak Mahindra Prime reported the highest growth of 94 percent y-o-y at Rs 117 crore in its June quarter net profit while the bank's international subsidiaries incurred a loss of Rs 10 crore as against a net loss of Rs 5 crore a year back.

The bank's restructured loans stood at Rs 6.3 crore during the quarter compared with Rs 7.8 crore in the Jan-March quarter.

saikat.das@network18online.com