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Kotak Mahindra Bank reported a 22 per cent increase in second quarter standalone net profit at ₹994 crore against ₹813 crore in the year-ago quarter.
Net interest income (difference between interest earned and interest expended) was up 16 per cent year-on-year (y-o-y) at ₹2,313 crore.
Other income increased 15 per cent to ₹954 crore.
Net interest margin (NIM) declined a tad to 4.33 per cent in the reporting quarter from 4.47 per cent in the year-ago period. Dipak Gupta, Joint Managing Director, attributed this compression in NIM to “everyone chasing good quality clients.”
Total deposits increased by 17 per cent to ₹1,65,671 crore. Of this, the proportion of low-cost current account, savings account (CASA) deposits in total deposits improved to 47.8 per cent from 39 per cent in the year-ago quarter.
Total advances were up 21 per cent to ₹1,52,574 crore. A break-up of the total advances shows that commercial vehicle/ construction equipment saw a robust 33 per cent growth followed by small business, personal loans and credit cards (32 per cent), corporate banking (26 per cent), and home loans and loan against property (20 per cent).
Gross non-performing assets as a percentage of gross advances improved a tad to 2.47 per cent against 2.49 per cent in the year ago quarter.
Consolidated results The private sector bank’s consolidated net profit in the second quarter was up 20 per cent at ₹1,441 crore against ₹1,202 crore in the year ago period.
The consolidated net profit incorporates the numbers of subsidiaries such as Kotak Mahindra Capital Company, Kotak Securities, Kotak Mahindra Prime, Kotak Mahindra Asset Management Company, and Kotak Mahindra Old Mutual Life Insurance and associates such as Phoenix Asset Reconstruction Company and Ace Derivatives and Commodity Exchange.
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