Kotak Mahindra Bank registered a 33 per cent increase in net profit for the first quarter of the fiscal.
The private sector lender’s standalone net profit grew by 32.7 per cent to ₹1,360.20 crore for the quarter ended June 30, 2019, against ₹1,024.94 crore in the corresponding period last fiscal. The bank’s total income grew by 19.6 per cent to ₹7,944.61 crore for the first quarter against ₹6,644.29 crore a year ago.
Net interest income rose by a robust 23 per cent to ₹3,173 crore in the first quarter of the fiscal from ₹2,583 crore a year ago. The net interest margin also improved further to 4.49 per cent in the quarter under review, from 4.28 per cent earlier.
Growth in other income was slightly slower at 12 per cent to ₹1,304.73 crore for the first quarter of the fiscal.
The bank’s provisions fell 32.5 per cent to ₹316.76 crore in the April to June 2019 quarter, against ₹469.63 crore a year ago. As on June 30, 2019, gross non-performing assets were at ₹4,613.52 crore, or 2.19 per cent of gross assets, against 2.17 per cent a year ago. Net NPAs was 0.73 per cent at the end of the first quarter, compared to 0.86 per cent a year ago.
As on June 30, 2019, SMA2 outstanding was ₹332 crore, or 0.16 per cent of net advances.
Jaimin Bhatt, Group Chief Financial Officer, Kotak Mahindra Bank, said slippages amounted to ₹750 crore for the first quarter of the fiscal, against ₹900-odd crore in the fourth quarter of last fiscal. “This includes MSMEs given a certain breathing time, which has shifted back. As of now, the auto sector is not (seeing) slippages,” he told reporters on Monday.
The bank said it continues to be cautious on the SME segment. The bank’s advances, as on June 30, 2019, grew 18 per cent to ₹2,08,030 crore, from ₹1,76,927 crore a year ago.