Money & Banking

Kotak Mahindra Bank Q3 net profit up 15 pc

Our Bureau | Updated on: Jan 28, 2022

AHMEDABAD, 01/02/2021 : UNION BUDGET 2021-22 RELATED PICTURES : A general view of Kotak Mahindra Bank in Ahmedabad on Monday February 01, 2021. Photo : VIJAY SONEJI / The Hindu. | Photo Credit: VIJAY SONEJI

Bank’s net interest income increased by 12 pc to ₹4,334 crore

Kotak Mahindra Bank reported a 15 per cent jump in standalone net profit to ₹2,131.36 crore in the third quarter of the fiscal from ₹1,853.54 crore in the same period last fiscal. For the quarter ended December 31, 2021, the bank’s net interest income increased by a robust 12 per cent to ₹4,334 crore against ₹3,876 crore a year ago. Net Interest Margin (NIM) for the third quarter of the fiscal was at 4.62 per cent. Other income increased by 5.6 per cent on a year-on-year basis to ₹1,363.66 crore in the third quarter of the fiscal. In a statement on Friday, the bank said other income of the third quarter of 2021-22 includes MTM loss on investments of ₹484 crore versus a ₹5 crore gain a year ago. The bank’s net total income increased by 10 per cent to ₹5,698 crore in the October to December 2021 quarter versus ₹5,166 crore a year ago. Asset quality improved on a sequential basis. Gross non-performing assets stood at ₹6,982.80 crore or 2.71 per cent of gross advances as on December 31, 2021, compared to 3.19 per cent as on September 30, 2021, and 2.26 per cent as on December 31, 2020. Net NPAs were 0.79 per cent of net advances as on December 31, 2021 compared to 1.06 per cent at the end of the second quarter of the fiscal and 0.50 per cent as on December 31, 2021. As at December 31, 2021, Covid-related provisions stood at ₹1,000 crore. The bank wrote back provisions of ₹131.74 crore in the third quarter of the fiscal as against provisions of ₹423.85 crore it had reported in the third quarter of last fiscal.

Jaimin Bhatt, Group President and Group Chief Financial Officer, Kotak Mahindra Bank, said the bank has seen improvement in asset quality on all fronts. “ There was negative growth on GNPAs on the back of better recoveries in the period,” he said in a media call.

Net customer additions in the third quarter were 21 lakh against 8 lakh a year ago. Customers as of December 31, 2021, was 3.07 crore against 2.5 crore as on December 31, 2020.

The bank’s advances increased by 18 per cent year on year to ₹2,52,935 crore as of December 31, 2021, while deposits grew by 15.1 per cent to ₹3,05,286 crore by the year end.

Published on January 28, 2022
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