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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 of this fiscal 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 in the third quarter of this fiscal versus ₹1,341.43 crore a year ago.
Provisions rose by 34.9 per cent to ₹599.03 crore in the third quarter of this fiscal against ₹444 crore a year ago.
“Covid-related provisions as of December 31, 2020, stood at ₹1,279 crore,” the bank said in a statement on Monday.
One-time restructuring
In accordance with the Resolution Framework for Covid-19 announced by the RBI on August 6, 2020, as of 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. This is roughly ₹600 crore.
As of 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.
The bank remained cautious in lending. Advances declined marginally to ₹2,14,103 crore as at December 31, 2020, from ₹2,16,774 crore as of December 31, 2019. Average savings deposits grew by 29 per cent to ₹1,07,363 crore for the nine months of 2020-21 compared to ₹83,049 crore in the corresponding period a year ago.
Jaimin Bhatt, Group President and Group Chief Financial Officer, Kotak Mahindra Bank, said there has been growth in segments such as home loan, consumer secured businesses and tractors. It is going slow in unsecured consumer loans, he told reporters.
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