Private sector lender Kotak Mahindra Bank, on Monday, posted a 23 per cent growth in net profit for the third quarter of the fiscal, led by strong growth in interest income and a write-back of provisions.
The lender reported a standalone net profit of ₹1,290.93 crore for the October to December 2018 quarter, compared to ₹1,053.21 crore in the same period a year ago.
Its total income grew by a robust 19.26 per cent to ₹7,214.21 crore for the third quarter of the fiscal, against ₹6,049.02 crore in the same period a year ago. Its interest earned for the quarter ended December 31, 2018, stood at ₹6,250.33 crore, against ₹5,009.20 crore a year ago.
Net interest income was almost flat at ₹2,939 crore in the third quarter this fiscal, compared to ₹2,394 crore in the same period a year ago. Net interest margin rose to 4.33 per cent in the third quarter this fiscal, against 4.27 per cent a year ago.
While the bank made a provision of ₹255.03 crore towards advances and for exposure to entities with unhedged foreign currency reserves, it wrote back provisions of ₹271.58 crore for mark-to-market losses and another ₹15.75 crore towards investments.
“As interest rates were falling, there was a reversal of provisions made earlier,” said Jaimin Bhatt, President and Group CFO, Kotak Mahindra Bank.
He also said there is a small non-fund exposure to one of the subsidiaries of troubled IL&FS.
When asked if the lender has had any further communication from the RBI on dilution of promoter shareholding, Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank, said the matter is sub-judice.
Shares of the lender gained 2.42 per cent and closed at ₹1,267.30 apiece on the BSE.