Business

Kotak Mahindra Bank Profit Rises 51%, Asset Quality Deteriorates

Kotak Mahindra Bank Profit Rises 51%, Asset Quality Deteriorates

The country's third largest private sector lender by market capitalisation - Kotak Mahindra Bank's net profit rose 51 per cent to Rs 1,724.48 crore as against Rs 1,141.65 crore in the same quarter last year, the Mumbai-based bank said in an exchange filing. Kotak Mahindra Bank's net interest income or the difference between the interest earned on loans and interest paid on deposits rose 25.15 per cent to Rs 3,349.59 crore versus Rs 2,676.31 crore in the same quarter last year. Net interest margin (NIM) for second quarter of current financial year rose to 4.61 per cent from 4.19 per cent in the same quarter last year.

The bank's bad loans in the quarter ended September 30 saw a spike as its gross non-performing assets (NPAs) as a percentage of total advances came in at 2.32 per cent versus 2.19 per cent in the previous quarter.

Its net NPAs rose to 0.85 per cent from 0.73 per cent in June quarter.

Kotak Mahindra Bank's provisions for bad loans rose to Rs 407.93 crore versus Rs 317.76 crore in the previous quarter.

Average savings deposits grew by 20 per cent to Rs 80,425 crore in the second quarter of current financial year. Average current account deposits grew by 22 per cent to Rs 33,216 crore.

As on September 30, 2019, the bank had a network of 1,512 full-fledged branches and 2,429 ATMs affording it the capacity and means to serve its customers through its wide presence, Uday Kotak-led bank said in a press release.

As of 2:21 pm, Kotak Mahindra Bank's share traded 0.09 per cent lower at Rs 1,614 compared to 0.62 per cent decline in the Sensex.



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