Private sector lender Kotak Mahindra Bank registered a 51 per cent increase in its net profit in the second quarter of the fiscal led by strong growth in interest income. The bank’s standalone net profit stood at Rs 1,724.48 crore in the quarter ended September 30, 2019 as against Rs 1,141.65 crore in the same period a year ago.

Total income of the bank jumped up 13.8 per cent to Rs 7,986.01 crore for the July to September 2019 quarter as compared to Rs 7,016.17 crore in the same period a year ago. Net interest income for the second quarter increased 25 per cent to Rs 3,350 crore from Rs 2,676 crore a year ago. Net interest margin for the second quarter this fiscal was 4.61 per cent, up from 4.19 per cent in the corresponding period a year ago.

Other income was almost flat at Rs 1,224.41 crore in the Q2 from a year ago.

The private sector lender has also taken the benefit of the lower corporate tax rate. “The bank has recognised provision for income tax for the six month ended September 30, 2019 and re-measured its Deferred Tax Assets basis the rate prescribed,”it said in the regulatory filing.

Its tax expense was however, lower at Rs 376.15 crore in the quarter under review from Rs 599.52 crore a year ago. The bank’s provisions rose 15.3 per cent to Rs 407.93 crore in the second quarter as compared to Rs 353.80 crore.

Asset quality saw some pressure. Gross non performing assets rose by nearly 25 per cent to Rs 5,033.55 crore for the second quarter of the fiscal or 2.32 per cent of gross advances. It was Rs 4,033.07 crore or 2.15 per cent as on September 30, 2018.

Net NPAs also rose to Rs 1,811.40 crore from Rs 1,500.76 crore in the second quarter of 2018-19. As on September 30, 2019, net NPAs amounted to 0.85 per cent of net advances, up from 0.81 per cent a year ago. Advances as on September 30, 2019 were up 15 per cent to Rs 2,13,299 crore.

The stock of Kotak Mahindra Bank were trading 0.47 per cent higher at Rs 1,623

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