Kotak Mahindra Bank reports 12% rise in profit, but misses estimates
Kotak Mahindra Bank posts a standalone net profit of Rs 1,024.94 crore in the June quarter, lower than Bloomberg estimates of Rs 1,208.50 crore
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 Rs 1,024.94 crore against Rs 912.73 crore a year ago. According to Bloomberg analyst estimates, the bank was expected to post a profit of Rs 1,208.50 crore.
Net interest income (NII), or the core income a bank earns by giving loans, was up 15.02% to Rs 2,582.90 crore versus Rs 2,245.55 crore last year. Other income grew 28.4% to Rs 1,164.59 crore.
Provisions and contingencies surged 130.5% to Rs 469.63 crore in the quarter from Rs 203.74 crore a year ago. On a quarter-on-quarter basis, they increased 53% from Rs306.94 crore.
Gross non-performing assets (NPAs) rose marginally 4.6% to Rs 3,899.45 crore at the end of the June quarter from Rs 3,726.62 crore in the same quarter last year. Slippages during the quarter declined 46% to Rs 321 crore against Rs 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 Rs 1.77 trillion while deposits rose 16% to Rs 1.89 trillion. Net interest margin rose to 4.04% against 3.54% a quarter ago.
The bank reported a consolidated net profit of Rs 1574.48 crore against Rs 1346.82 crore a year ago.
At 12.51pm, Kotak Mahindra Bank shares were trading at Rs 1380 on BSE, down 1.6% from its previous close while India’s benchmark Sensex Index rose 0.21% to 36457.36 points.