Mumbai: Kotak Mahindra Bank Ltd on Thursday said its net profit for the June quarter rose 12.3% from a year ago helped by higher net interest income and other income. Standalone net profit for the first quarter stood at 1,024.94 crore against 912.73 crore a year ago. According to Bloomberg analyst estimates, the bank was expected to post a profit of 1,208.50 crore.

Net interest income (NII), or the core income a bank earns by giving loans, was up 15.02% to 2,582.90 crore versus 2,245.55 crore last year. Other income grew 28.4% to 1,164.59 crore.

Provisions and contingencies surged 130.5% to 469.63 crore in the quarter from 203.74 crore a year ago. On a quarter-on-quarter basis, they increased 53% from 06.94 crore.

Gross non-performing assets (NPAs) rose marginally 4.6% to 3,899.45 crore at the end of the June quarter from 3,726.62 crore in the same quarter last year. Slippages during the quarter declined 46% to 321 crore against 594 crore a quarter ago.

As a percentage of total loans, gross NPAs fell at 2.17% as compared to 2.22% in the previous quarter and 2.58% in the year-ago quarter. Net NPAs declined at 0.86% in the June quarter compared to 0.98% in the previous quarter and 1.25% in the same quarter last year.

Advances for the quarter grew 24% to 1.77 trillion while deposits rose 16% to 1.89 trillion. Net interest margin rose to 4.04% against 3.54% a quarter ago.

The bank reported a consolidated net profit of 1574.48 crore against 1346.82 crore a year ago.

At 12.51pm, Kotak Mahindra Bank shares were trading at 1380 on BSE, down 1.6% from its previous close while India’s benchmark Sensex Index rose 0.21% to 36457.36 points.

Close