Kotak Mahindra Bank on Monday reported a 27 per cent year-on-year (YoY) rise in its net profit at Rs 2,184 crore for the second quarter ended September 30, 2020, on account of lower tax rate and decline in provisions for bad loans. The Mumbai-headquartered bank had posted net profit of Rs 1,724 crore in the same quarter last year, the bank said in a regulatory filing.
On the consolidated basis, the net profit was up 22 per cent year-on-year at Rs 2,947 crore.
The bank's pre-tax profit for Q2FY21 was Rs 2,929 crore, up 39 per cent from Rs 2,101 crore in Q2 FY20, Kotak Mahindra Bank said in a filing to the BSE.
Kotak Mahindra Bank's net interest income (NII), the difference between interest earned and interest expended, rose 17 per cent Rs 3,913 crore, from Rs 3,350 crore in Q2FY20. Net interest margin during the July-September quarter stood at 4.52 per cent.
Non-Interest Income (comprising of fee, services and other income) declined by 41.23 per cent to Rs 1,452 crore during Q2 FY21 from Rs 1,224 crore in Q2 FY20. Fee income declined to Rs 1,058 crore from Rs 1,162 crore in the same period last year.
The bank's operating profit increased by 31 per cent to Rs 3,297 crore in Q2 FY21 from Rs 2,509 crore in Q2 FY20.
Provision and contingencies declined to Rs 368 crore in July-September quarter of this fiscal as against Rs 408 crore in the same period a year ago. "COVID related provisions as at September 30, 2020 stood at Rs 1,279 crore (0.62 per cent of net advances). Non-specific provisions towards advances (including standard and Covid provisions) is at 177 per cent of the net NPA of the bank," it said.
On asset quality front, gross non-performing assets (NPAs) ratio as a percentage of gross advances rose to 2.55 per cent from 2.32 per cent in Q2 FY20. The net NPA ratio too increased to 0.64 per cent in Q2 FY21, against 0.85 per cent in the year-ago quarter.
"The bank has not recognised any NPAs since August 31, 2020, in line with the interim order of Supreme Court. If the said order was not given effect to, the GNPA would have been 2.70 per cent and NNPA 0.74 per cent. The bank has, however, made provision for such advances," the lender said.
In absolute terms, the bank's Gross NPA stood at Rs 5,335.95 crore and Net NPA stood at Rs 1,303.78 crore as on September 30, 2020.
Kotak Mahindra Bank's CASA (Current Account and Savings Account) ratio stood at 57.1 per cent as against 53.6 per cent as on September 30, 2019. The capital adequacy ratio of the Bank as per Basel III, was 22.0 per cent and Tier I ratio was 21.4 per cent.
Meanwhile, shares of Kotak Mahindra Bank were trading at Rs 1,363.50 apiece, down 1.41 per cent, against previous closing price of Rs 1,383.05 on the BSE.