Kotak Mahindra Bank Q4 net profit falls 10% on higher provisioning
Net profit for the quarter stood at ₹1266.60 crore against ₹1407.80 crore a year ago Provisions and contingencies surged to ₹1,047.47 crore in the quarter from ₹171.26 crore a year ago.
MUMBAI: Kotak Mahindra Bank Ltd on Wednesday reported a 10.03% fall in its March quarter net profit due to higher provisioning.
Net profit for the quarter stood at ₹1266.60 crore against ₹1407.80 crore a year ago. The profit was lower than ₹1,498 crore estimated by a Bloomberg poll of 10 analysts.
Provisions and contingencies surged to ₹1,047.47 crore in the quarter from ₹171.26 crore a year ago.
General provision for covid-19 stood at ₹650 crore, while the provision towards advances/others (including provisions for exposures to entities with unhedged foreign currency exposures) was ₹3,73.72 crore.
Other income grew 16.2% year-on-year to ₹1,489.4 crore, while operating profit increased 19.4% to ₹2,725.28 crore.
Net interest income, the difference between interest earned and expended, grew 17.23% year-on-year to ₹3,559.65 crore, with net interest margin improving 26 basis points to 4.72%.
Among subsidiaries, profit of Kotak Securities in Q4 grew 46.8% year-on-year to ₹163 crore. Kotak Mahindra Life Insurance showed 19.6% growth in profit at ₹165 crore and Kotak AMC & TC business reported a 17.3% rise in profit at ₹88 crore. Kotak Mahindra Prime's profit declined 1.8% to ₹161 crore in March quarter.
Kotak Bank's consolidated Q4 profit declined 6.5% year-on-year to ₹1,905.18 crore, but for FY20 net profit jumped 19.3% to ₹8,593.36 crore.
Last month, the bank received board approval for raising capital by issuing up to 6.5 crore equity shares through a private placement, follow-on public offering, qualified institutions placement or a combination thereof.
As a percentage of total loans, gross NPAs stood at 2.25%, compared to 2.46% in the previous quarter and 2.14% in the same quarter a year ago. Net NPAs were at 0.71% in the March quarter compared to 0.89% in the previous quarter and 0.75% in the same quarter last year.
The bank said advances were up 7% to ₹2.20 trillion in March quarter 2020, while total deposits grew 16% YoY to ₹2.63 crore with savings deposit crossing ₹1 trillion mark in Q4.
At 02:30 pm, shares of Kotak Bank were at ₹1177.60 on the BSE, up 1.58% from its previous close, while India’s benchmark Sensex gained 2.05% to 32013.78 points.
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