Kotak Mahindra Bank Q3 profit rises 27% to Rs 1,596 crore

Private lender Kotak Mahindra Bank has reported 27 per cent year-on-year growth in its consolidated net profit at Rs 2,349 crore for the third quarter ended December 30, 2019, driven by a rise in net interest income. Kotak Mahindra Bank's PAT (Profit After Tax) for Q3 FY19 stood at Rs 1,822.79 crore.

On standalone basis, the private lender's profit increased to Rs 1,596 crore from Rs 1,291 crore in Q3FY19, registering a YoY growth of 24 per cent. "During this quarter, employee cost includes non-recurring charge towards pension obligation of nearly Rs 200 crore mainly due to change in annuity rate, DA, etc," Kotak Mahindra Bank said in a filing to BSE.

Uday Kotak-led bank's net interest income (NII), or the core income a bank earns by giving loans, jumped 17 per cent to Rs 3,430 crore in Q2FY20 from Rs 2,926 crore in Q2FY19. Net interest margin (NIM) stood at 4.69 per cent as against 4.31 per cent in the year-ago period.

The bank's Net NPA stood at Rs 1,925.08 crore in Q3 FY20 as against Rs 1,397.27 crore reported in Q3 FY19, registering a 27 per cent rise. Gross NPA grew 37 per cent on a year-on-year basis to Rs 5,413 crore as against Rs 4,128 crore recorded in a year-ago period.

Lender's CASA ratio as on December 31, 2019, stood at 53.7 per cent compared to 50.7 per cent as on December 31, 2018. Net Interest Income (NII) of the bank, for Q3FY20, increased to Rs 3,430 crore as against Rs 2,926 crore in Q3FY19, registering a rise of 17 per cent. Net Interest Margin (NIM) for Q3FY20 stood at 4.69 per cent, up from 4.31 per cent in Q3FY19.

The bank's consolidated Capital & Reserves and Surplus as on December 31, 2019, stood at Rs 65,018 crore, compared to Rs 56,186 crore as on December 31, 2019. Consolidated Advances stood at Rs 250,172 crore as on December 31, 2019.

Following Q3 earnings, shares of Kotak Mahindra Bank touched an intraday low of Rs 1,630, falling 4% on BSE. The stock trades were higher than its 50, 100 and 200-day moving averages but lower than 5 and 20-day moving averages. Kotak Mahindra Bank stock price has moved below its 30-day simple moving average today.

Also read: Kotak Mahindra Bank Q2 profit jumps 51% to Rs 1,724 crore; NII up 25%

Edited by Manoj Sharma