Kotak Mahindra Bank Profit Rises 27% In September Quarter
Kotak Mahindra Bank shares were down 1 per cent at Rs 1,368.
Kotak Mahindra Bank on Monday reported a net profit of Rs 2,184.48 crore in the July-September period, marking a rise of 26.67 per cent compared to the corresponding period a year ago. The jump in the private sector bank's profit came on account of lower provisioning for non-performing assets - or bad loans - during the quarter. Shares in Kotak Mahindra Bank fell as much as 2.55 per cent to Rs 1,347.75 apiece on the BSE. (Track Kotak Mahindra Bank Shares)
Kotak Mahindra Bank's provisions came down to Rs 368.59 crore in the three-month period ended September 30, from Rs 962 crore in the previous quarter.
Net interest income - the difference between interest earned and interest expended - rose 17 per cent to Rs 3,913.21 crore, from Rs 3,349.59 crore in the year-ago period, according to a regulatory filing by Mumbai-based Kotak Mahindra Bank.
Asset quality of the country's third largest private sector lender by market value improved.
The lender's gross non-performing assets as a percentage of total advances came in at 2.55 per cent in the July-September period, as against 2.70 per cent in the previous quarter.
Total gross NPAs stood at Rs 5,335.95 crore, as against 5,619.33 crore in the previous quarter.
Net NPAs as a percentage of total advances came in at 0.64 per cent in the September quarter, as against 0.87 per cent in the April-June period.
Kotak Mahindra Bank said its coronavirus pandemic-related provisions stood at Rs 1,279 crore (0.62 per cent of net advances) as of September 30.
Non-specific provisions towards advances (including standard and COVID-19 provisions) were at 177 per cent of net NPAs, it said in a press release.
At 1:56 pm, the Kotak Mahindra Bank stock traded 0.76 per cent lower at Rs 1,372.50 apiece on the BSE, as against a 1.44 per cent decline in the S&P BSE Sensex index amid a broad-based selloff.