 "Kotak Mahindra Q2 net profit up 43% to Rs 813 crore")
Private sector lender, Kotak Mahindra Bank’s consolidated net profit increased by 28% to Rs 1,202.4 crore in the July-September quarter from Rs 941.89 crore a year ago, led by higher net interest income and other income.
Net interest income, the difference between interest earned and interest expended, increased by 17% to Rs. 2,664 crore.
Other income rose by 66% to Rs 2881.3 crore. Of this, the bank made a profit on sale of investments including revaluation (insurance business) amounting to Rs 539.91 crore in Q2 FY17 compared with a loss of Rs 62.83 crore in the September 2015 quarter.
On a standalone basis, its net profit increased by 43% to Rs 813 crore in the July-September quarter from Rs 569.50 crore in Q2 FY16.
Consolidated net interest margin, a key indicator of bank’s profitability improved by 8 basis points to 4.46% in Q2 FY17.
At the standalone level, asset quality improved marginally with the gross non-performing assets to gross advances improving to 2.49% as compared to 2.50% in the quarter ended June. In the same period net NPA also improved to 1.20% as compared to 1.21% in the previous quarter.
Standalone net interest margin improved to 4.47% as compared to 4.30% in the corresponding quarter last year and 4.37% in the June 2016 quarter.
The bank remains well-capitalised with consolidated capital adequacy ratio of the bank (including unaudited profits as per Basel III as on September 30, 2016) at 17.3% and Tier I ratio at 16.5%.
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