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Kotak Mahindra Bank Q1 profit jumps 32% to Rs 1,642 cr; net interest income up 5.8%

Kotak Mahindra Bank Q1 profit jumps 32% to Rs 1,642 cr; net interest income up 5.8%

Kotak Mahindra Bank's asset quality worsened in the first quarter as GNPA ratio stood at 3.56 per cent as of Q1 FY 22 vs 3.25 per cent in the previous quarter

Kotak Bank's  NII grew 5.8 per cent to Rs 3,941.8 crore. Photo: Reuters Kotak Bank's NII grew 5.8 per cent to Rs 3,941.8 crore. Photo: Reuters

Kotak Mahindra Bank on Monday reported a 32 per cent rise in its standalone net profit at Rs 1,642 crore for the April-June quarter as compared to Rs 1,244.4 profit in the same period last year. The consolidated PAT for Q1 FY22 was Rs 1,806 crore as against Rs 1,853 crore in Q1 FY21.

The private lender's net interest income (NII) grew 5.8 per cent to Rs 3,941.8 crore as compared to Rs 3,723.8 crore year-year-year during the Q1 FY21. Kotak Bank's net interest margin for the said quarter stood at 4.6 per cent.

The operating profit for Q1 FY22 was Rs 3,121 crore, up 19 per cent from Rs 2,624 crore in Q1 FY21. The CASA ratio as of June 30, 2021, stood at 60.2 per cent compared to 56.7 per cent during the same period last year.

Kotak Bank's average current account deposits grew 28 per cent to Rs 46,341 crore for Q1 FY22 compared to Rs 36,066 crore for Q1 FY21.
The average savings deposits grew 10 per cent to Rs 116,218 crore for Q1 FY22 compared to Rs 105,673 crore for Q1 FY21. The bank's customer assets were Rs 235,358 crore as of Q1 compared to Rs 216,819 crore during the same period last year. Advances as at June 30, 2021, stood at Rs 217,465 crore compared to Rs 203,998 crore as at June 30, 2020.

Kotak Bank has maintained COVID-related provisions at Rs 1,279 crore as of Q1. "In accordance with the Resolution Framework for COVID-19 and MSME announced by RBI, the Bank has implemented total restructuring of Rs 552 crore as at June 30, 2021," the bank said.

The bank's asset quality worsened as the gross non-performing asset ratio stood at 3.56 per cent as of Q1 FY 22 as against 3.25 per cent in the previous quarter. The net NPA was at 1.28 per cent vs 1.21 per cent in the March quarter. Total provision and contingencies also fell 2.8 per cent to Rs 935 crore.
Among its subsidiaries, Kotak Securities reported PAT of Rs 236 crore vs Rs 169 crore in Q1 FY21; Kotak Asset Management & Trustee Company Rs 107 crore; Kotak Mahindra Prime Rs 79 crore; Kotak Mahindra Investments Rs 71 crore; and Kotak Mahindra Capital Company Rs 42 crore.

Kotak Mahindra Bank stock is up 1.09 per cent today at 1,741.95 compared to the previous session close of Rs 1,723.10 on the National Stock Exchange.

Also read: Kotak Bank FY21 net profit rises 17% to Rs 6,965 crore

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