Money & Banking

Kotak Mahindra Bank Q1 net profit down 8.5% on higher provisions

Our Bureau Mumbai | Updated on July 27, 2020 Published on July 27, 2020

Private sector lender Kotak Mahindra Bank on Monday reported an 8.5 per cent drop in its standalone net profit in the first quarter of the fiscal with a three-fold increase in provisions.

For the quarter ended June 30, 2020, the bank reported a standalone net profit of ₹1,244.45 crore as against ₹1,360.20 crore recorded a year ago.

Its total income fell 3.3 per cent to ₹7,685.40 crore in the first quarter of the fiscal as against ₹7,944.61 crore a year ago.

Net interest income for the first quarter of 2020-21 increased by 17.8 per cent to ₹3,724 crore from ₹3,161 crore a year ago. Net interest margin for the first quarter of the fiscal was at 4.4 per cent. Other income fell by over 41 per cent to ₹773.54 crore in the quarter under review.

Asset quality was a concern with provisions tripling to ₹962.01 crore in the April to June quarter 2020 from ₹316.76 crore a year ago.

Covid provisions

“Additional Covid-19 related general provision of ₹667 crore has been made at the consolidated level in the first quarter, which includes ₹616 crore at the bank level,” it said in a statement, adding that total provisions for Covid-19 at the group stand at ₹1,381 crore as at June 30, 2020.

Gross non-performing assets rose 2.7 per cent to ₹5,619.33 crore as on June 30, 2020 from 2.19 per cent a year ago. Net NPAs amounted to ₹1,777.10 crore or 0.87 per cent of net advances at the end of the first quarter of the fiscal versus 0.73 per cent as on June 30, 2019.

Capital adequacy ratio of the bank as per Basel III, as on June 30, 2020 was 21.2 per cent and Tier I ratio is 20.6 per cent.

Average savings deposits crossed ₹1 lakh crore for the bank with a 34 per cent growth to ₹1,05,673 crore for the first quarter. Advances as on June 30, 2020 fell marginally to ₹2,03,998 crore at the end of the first quarter this fiscal from ₹2,08,030 crore as on June 30, 2019.

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Published on July 27, 2020
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