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Kotak Mahindra Bank surpasses estimates; profit jumps 23% in Q3

The bank's asset quality also improved during the quarter. Gross non-performing assets ratio fell from 2.15% in the preceding quarter to 2.07% this quarter.

twitter-logo BusinessToday.In   New Delhi     Last Updated: January 21, 2019  | 15:09 IST
Kotak Mahindra Bank surpasses estimates; profit jumps 23% in December quarter
PC: Reuters

Kotak Mahindra Bank performed better than what analysts estimated for its quarterly results. Driven by strong loan growth, the bank's net profit rose by 23% year-on-year to Rs 1,291 crore in the quarter ended December, as mentioned in the bank's exchange filing. Analysts estimated the bank to make Rs 1,190 crore in profits.

Net interest income of the bank, which is the difference between interest earned and expended, also rose 27% to Rs 2,939 crore, higher than the estimate of Rs 2,633 crore. Net interest margin increased to 4.33% to 4.2% in the previous quarter. The company also said in a statement that the bank's profit and revenue were helped by a rise of 23% in total advances that stood at Rs 1,96,432 crore as on December 31.

The bank's asset quality also improved during the quarter. Gross non-performing assets ratio fell from 2.15% in the preceding quarter to 2.07% this quarter. Additionally, net bad loans also dipped from 0.71% to 0.81%.

Stock of the Kotak Mahindra Bank rose as much as 0.9% after the Q3 results was announced. Kotak Mahindra is also the best performer of the last 12 months on the banking index.  

Also read: India's richest 1% gained Rs 2,200 crore a day in 2018: Oxfam

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