Kotak Mahindra Bank Q1 net profit jumps 33% to Rs 1,360 crore on lower provisions
BusinessToday.In July 22, 2019
Uday Kotak-led Kotak Mahindra Bank has clocked 32.71 per cent year-on-year growth in its net profit at Rs 1,360.20 crore for the first quarter ended June 30, 2019, driven by a rise in net interest income and lower provisions.
"The Mumbai-headquartered private lender's net profit stood at Rs 1,024.94 crore in the same quarter last year," Kotak Mahindra Bank said in a filing to the Bombay Stock Exchange.
The bank's net interest income (NII), or the core income a bank earns by giving loans, climbed 22.85 per cent to Rs 3,173.04 crore versus Rs 2,582.90 crore in the same period last year. Net interest margin (NIM) for Q1FY20 stood at 4.49 per cent as against 4.28 per cent in Q1FY19.
The other income (non-interest income) rose by 12 per cent to Rs 1,304.73 crore against Rs 1,164.59 crore in the year-ago period.
Provisions and contingencies of the bank dipped by 32.55 per cent to Rs 316.76 crore versus Rs 469.63 crore in the same quarter last fiscal.
Kotak Mahindra Bank's asset quality remained stable during June quarter, with gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - rising marginally to 2.19 per cent versus 2.17 per cent in the year-ago quarter. Net NPA improved to 0.73 per cent during June quarter as compared to 0.86 per cent in the corresponding quarter last year.
Deposits rose 22.76 per cent YoY to Rs 233,000 crore, while advances increased 18 per cent YoY to Rs 208,030 crore.
Capital adequacy ratio of the bank, as per Basel III, stood at 17.8 per cent as on June 30. As on June 30, 2019, the bank had a network of 1,503 full-fledged branches and 2,394 ATMs affording it the capacity and means to serve its customers through its wide presence.
During the quarter, the bank granted 33.81 lakh options under the employee stock option scheme (ESOP). Stock options aggregating to 581,903 were exercised and allotted during the quarter and 1.27 crore stock options were outstanding with employees of the bank and its subsidiaries as of June 30, 2019.
Shares of Kotak Mahindra Bank shares closed trade at Rs 1,453.65 apiece, down 3.08 per cent, on the BSE on Monday.
Edited by Chitranjan Kumar