Home / Companies / Company Results /  Kotak Mahindra Bank Q2 net surges 51% to 1,724 cr; asset quality weakens

Mumbai: Kotak Mahindra Bank said on Tuesday its profit after tax totalled 1,724 crore during the second quarter of the current financial year, up 51 per cent from 1,142 crore in Q2 FY19.

Net interest income for Q2FY20 increased to 3,350 crore from 2,676 crore in Q2 FY19, up by 25 per cent. Net interest margin, a key indicator of a bank's profitability, rose to 4.61% from 4.19% last year.

However, asset quality weakened in September quarter with gross non-performing assets (as a percentage of gross advances) rising 13 basis points sequentially to 2.32 per cent and net NPA climbing 12 basis points quarter-on-quarter to 0.85 per cent in Q2.

CASA (current account savings account) ratio as on September 30 stood at 53.6 per cent compared to 50.2 per cent as on September 30 last year.

Average savings deposits grew by 20 per cent to 80,425 crore compared to 66,892 crore for Q2 as average current account deposits grew by 22 per cent to 33,216 crore for Q2 FY20 compared to 27,231 crore for Q2 FY19.

Advances as on September 30 were up 15 per cent to 2.13 lakh crore ( 1.84 lakh crore as on September 30, 2018). Capital adequacy ratio of the bank as per Basel III norms is 18.2 per cent and tier I ratio is 17.6 per cent.

Kotak's loan growth during the quarter slowed to 15%, versus a growth of 18% last quarter and 21% in the same period last year.

Interest earned during the period rose 16.6% to 67.62 billion rupees, while tax expenses dropped 37.3% to 3.76 billion rupees.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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