Kotak Mahindra Bank on Monday said its consolidated net profit for the quarter ended December 31 rose 21 per cent to Rs 463 crore from Rs 384 crore a year earlier.
On a standalone basis, the private lender’s profit after tax rose 47 per cent to Rs 276 crore from Rs 188 crore a year ago. Higher interest income, growth in non-interest income and lower provisions aided the bank’s earnings during the quarter.
Net interest income, or the difference between interest income and interest expenditure, stood at Rs 651 crore during the three months, a rise of 21 per cent over the year-ago period. Provisions fell 28 per cent year-on-year, as the bank’s asset quality improved.
The gross bad loan ratio narrowed by 101 basis points to 1.52 per cent, compared to the corresponding period, last year, while the net non-performing asset ratio declined by 25 basis points year-on-year to 0.56 per cent. The bank’s deposits stood at Rs 38,385 crore as of December 31, up 36 per cent from a year ago. Its current account and savings account deposits ratio was 28 per cent as of December-end, compared with 26 per cent a quarter ago.
The consolidated quarterly annualised net interest margin moderated to 4.7 per cent in the quarter from five per cent a year ago and 4.8 per cent in the previous earlier.
Advances rose 32 per cent to Rs 52,847 crore as of December 31.
Kotak Mahindra Bank’s capital adequacy ratio stood at 16.9 per cent at the end of the quarter.
Among the bank’s subsidiaries, vehicle financing arm Kotak Mahindra Prime and insurance subsidiary Kotak Mahindra Old Mutual Life Insurance reported strong growth in earnings. The insurance company’s profit nearly doubled to Rs 47 crore, while Kotak Mahindra Prime’s net profit rose 10.6 per cent to Rs 104 crore during the quarter.