Kotak Mahindra Bank Q3 net profit up 16%

Private sector lender Kotak Mahindra Bank reported a 16.1 per cent increase in its standalone net profit at ₹ 1,853.54 crore for the third quarter this fiscal as against ₹ 1,595.90 crore in the same period last fiscal.

Net interest income for the quarter ended December 31, 2020 rose by 17 per cent to ₹ 4,007 crore, from ₹ 3,430 crore a year ago. Net interest margin for the quarter under review was at 4.51 per cent.

Other income was almost flat at ₹ 1,334.38 crore (₹ 1,341.43 crore).

Provisions soared by 34.9 per cent to ₹ 599.03 crore in the third quarter this fiscal as against ₹ 444 crore a year ago.

“Covid related provisions as at December 31, 2020 stood at ₹ 1,279 crore,” the bank said in a statement on Monday.

In accordance with the Resolution Framework for Covid-19 announced by RBI on August 6, 2020, as at December 31, 2020, the bank has approved, for certain eligible borrowers, one-time restructuring of 0.28 per cent of net advances, it further said.

As at December 31, 2020, gross non performing assets was 2.26 per cent and net NPA was 0.50 per cent.

Had the bank classified the borrowers more than 90 days overdue on December 31, 2020 as NPA, gross NPA would be 3.27 per cent (September 30, 2020: 2.70 per cent); net NPA would be 1.24 per cent (September 30, 2020: 0.74 per cent), it further said, adding that it has made provision for such advances including towards interest accrued but not collected for the entire period, with moratorium.