Kotak Mahindra Bank : Consolidated net profit up 50.62% at Rs 4,150.19 crore

On July 22, Kotak Mahindra Bank announced a consolidated profit of Rs 4,150.19 crore, a year-over-year increase of 50.62 percent.

The company's standalone net profit increased by 66.7% year-over-year to Rs 3,452.30 crore, which was higher than the 53.0% growth forecast of Rs 3,182 crore by market experts.

The private sector lender based in Mumbai posted a standalone net profit of Rs 3,495.59 crore in the same period last year.

Asset quality

The lender's asset quality improved in June, falling from 2.27 percent to 1.75 percent gross non-performing assets (NPAs) year over year.

The quarterly net nonperforming asset ratio improved to 0.43 percent from the prior quarter's 0.41 percent and the prior year's 0.69 percent.

As of June 30th, gross nonperforming assets were Rs 5,909 crore, down from Rs 6,379 crore in the same time last year. Gross nonperforming assets were around Rs 5,768 crore in the previous quarter.

Comparatively, net nonperforming assets were Rs 1,302 crore a year ago, down from Rs 1,749 crore.

There were Rs 692 billion worth of recoveries and enhancements. During the period of April-June, provisions and contingencies increased to Rs 365 crore from Rs 23 crore in the same period last year, as reported in an investor presentation.

The bank's provision coverage ratio increased dramatically over the previous year, standing at 78%.

Interest income

Net interest income (NII), the difference between interest income earned from financing activities and interest paid to depositors, rose 33 percent year-over-year to Rs 6,234 crore.

The bank reported that the net interest margin (NIM) for Q1FY24 was 5.57 percent in a press release.

Advances and deposits

From Q1FY23's Rs 55,081 crore to Q2FY23's Rs 59,431 crore, average current deposits increased by 8 percent. Average savings deposits, however, fell to Rs 1.2 lakh crore from Rs 1.22 lakh crore a year earlier.

Compared to Q1FY23, average term deposits increased by 40 percent, from Rs 1.30 lakh crore to Rs 1.82 lakh crore.

The CASA ratio was 49% at that time.

The bank reported a rise in advances of 19 percent year over year, from Rs 2.83 trillion to Rs 3.37 trillion in the same quarter of the previous fiscal year.

Kotak Mahindra Bank closed at Rs 1,971.10 on BSE on July 21, up 0.70 percent from the previous close despite a 1.31 percent drop in the benchmark Sensex, which ended the day at 66,684.26.

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