Kotak Mahindra Bank on July 22 reported a 50.62 percent year-on-year rise in its consolidated profit at Rs 4,150.19 crore in the first quarter of the current financial year on the back of a sharp increase in net interest income and improved asset quality.
On a standalone basis, net profit rose 66.7 percent on-year to Rs 3,452.30 crore, beating analysts' expectations of a 53 percent growth at Rs 3,182 crore, the bank said in a release.
In the year-ago quarter, the Mumbai-based private sector lender reported a standalone net profit of Rs 3,495.59 crore.
Asset quality
On the asset quality front, the lender saw an improvement in the June, with gross non-performing assets (NPAs) declining to 1.75 percent from 2.27 percent in the year-ago period.
Net NPA fell to 0.43 percent against 0.41 percent in the previous quarter and 0.69 percent in a year-ago period.
In absolute terms, gross NPAs were at Rs 5,909 crore as on June 30 against Rs 6,379 crore in the year-ago period. In the previous quarter, gross NPAs were around Rs 5,768 crore.
Net NPAs were at Rs 1,302 crore against Rs 1,749 crore in the year-ago period.
Recoveries and upgrades stood at Rs 692 crore. According to an investor presentation, provisions and contingencies for the April-June period stood at Rs 365 crore against Rs 23 crore in the year-ago quarter.
The provision coverage ratio of the bank was at 78 percent, sharply higher from the year-ago period.
Interest income
Net interest income (NII), the difference between the interest income earned from lending activities and the interest paid to depositors, increased to Rs 6,234 crore, up 33 percent on-year.
The net interest margin (NIM) was 5.57 percent for Q1FY24, the bank said in a release.
Advances and deposits
Average current deposits grew 8 percent to Rs 59,431 crore from Rs 55,081 crore in Q1FY23. But there was a drop in average savings deposits at Rs 1.2 lakh crore from Rs 1.22 lakh crore in the year-ago period.
Average term deposits were up 40 percent from Rs 1.30 lakh crore in the year-ago period to Rs 1.82 lakh crore for Q1FY24.
CASA ratio stood at 49.0 percent.
Advances increased 19 percent on-year to Rs 3.37 lakh crore from Rs 2.83 lakh crore in the same quarter of the previous fiscal, the bank said.
On July 21, Kotak Mahindra Bank ended at Rs 1,971.10 on BSE, up 0.70 percent from the previous close, while the benchmark Sensex declined 1.31 percent to 66,684.26.
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