Home / Companies / News /  Kotak Mahindra Bank Q2 net profit falls 7%, asset quality improves

Private lender Kotak Mahindra Bank on Tuesday reported a 7% fall in its Q2 standalone net profit at 2,032 crore as compared to 2,184.5 crore in the year-ago quarter. Shares of Kotak Bank surged nearly 3% at 2217 apiece on the BSE in Tuesday's deals after the earnings announcement.

The bank's net interest income (NII), the difference between interest earned and interest expended, rose over 3% to 4,020.6 crore from 3,897 crore in the same quarter last year. The private lender's provisions and contingencies declined to 424 crore from 703.5 crore quarter-on-quarter (QoQ), though rose from 333 crore YoY.

Kotak Mahindra Bank's gross non-performing assets (GNPA) during the second quarter stood at 3.19% as compared to 3.56% in the June quarter, however, it was higher than 2.70% in the year-ago quarter. Meanwhile, the net NPA improved to 1.06% versus 1.28% on a sequential basis, and remained flat on the YoY basis.

The lender's tax expenses for the quarter ended September declined to 664 crore from 744 crore in the corresponding quarter of the previous fiscal. On the other hand, its capital adequacy ratio (Basel III) stood at 21.76% from 23.11% QoQ and 22.05% YoY.

“The Bank however, has not experienced any significant disruptions during the pandemic and has considered the impact on carrying value of assets based on the external or internal information available up to the date of approval of the standalone financial results," said Kotak Mahindra Bank in an exchange filing.

The future direct and indirect impact of COVID-19 on Bank, results of operations, financial position and cash flows remains uncertain and will depend on present as well as future developments, including steps to contain its spread or mitigate its impact, it added. The bank, as at 30 September 2021, continues to hold provisions of 1,279 crore made on account of COVID-19 pandemic.

 

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