Comments
Kotak Mahindra Bank reported a 31 per cent increase in its standalone net profit in the October-December period at Rs 362 crore on the back of higher interest income.
The private-sector lender had posted a net profit of Rs 276 crore in the year-ago period.
Net interest income (difference between interest earned and expended) rose by 26 per cent at Rs 823 crore (from 651 crore in the year-ago period). Other income was up 8 per cent to Rs 305 crore compared with Rs 282 crore in the corresponding quarter previous fiscal.
Net non-performing assets (NPAs) increased to 0.62 per cent from 0.49 per cent in the year-ago quarter.
Total provisions during the quarter increased to Rs 42 crore (Rs 31 crore). “For this quarter, we have seen a larger growth in the wholesale (24 per cent) and the agriculture (49 per cent) businesses. Retail and wholesale proportion still remains about fifty-fifty,” said Jaimin Bhatt, Group Chief Financial Officer, Kotak Mahindra Bank.
He said the commercial-vehicle segment is slowing down and the stress on the asset quality hasn’t changed much and added, “It will continue for now.”
“We maintain our credit growth guidance at 20 per cent plus year-on-year,” he said.
Restructured loans during the quarter stood at 9.7 crore from Rs 25 crore in the year-ago period.
Consolidated results
Consolidated net profit jumped 25 per cent to Rs 577 crore in the December quarter compared with Rs 463 crore in the same quarter last fiscal.
Net interest income during the quarter was up 23 per cent to Rs 1,232 crore (Rs 1,000 crore).
Net interest margins during the quarter declined to 4.6 per cent from 4.7 per cent in the year-ago period on the back of higher corporate loans.
Kotak Mahindra Prime, the bank’s car-financing subsidiary that was the major contributor to profit after the bank, posted a flat net profit of Rs 105 crore from Rs 104 crore in the year-ago period.
At the day’s close, the shares of the bank ended at Rs 640.55 a share, higher by 1.83 per cent on the Bombay Stock Exchange.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.