Private sector lender Kotak Mahindra Bank has reported a whopping 42.8 percent growth in second quarter standalone profit at Rs 813.3 crore compared with year-ago period.
The growth was driven by strong net interest income, other income and operating profit. Net interest income grew by 18.9 percent year-on-year to Rs 1,995.3 crore in July-September quarter, which was in-line with estimates.
Net interest margin expanded to 4.47 percent from 4.3 percent YoY. "Advances were up 13 percent YoY to Rs 1.26 lakh crore while saving accounts deposits grew by 35 percent to Rs 30,678 crore and current accounts increased by 28 percent to Rs 19,273 crore," the bank said in its filing.
Standalone operations include only core banking business while consolidated earnings comprise of banking as well as brokerage, mutual fund etc. Profit beat analysts’ estimates, which was expected at Rs 777.5 crore and net interest income estimated at Rs 1,970 crore for the quarter, according to analysts polled by CNBC-TV18.
Asset quality was stable during the quarter with standalone gross non-performing assets (NPA) at 2.49 percent against 2.50 percent and net NPA at 1.2 percent against 1.21 percent on sequential basis but in absolute terms, it weakened a bit. In absolute terms, gross NPA increased 4 percent quarter-on-quarter to Rs 3,180.6 crore and net NPA rose 3.4 percent to Rs 1,516.7 crore in Q2.
Provisions for bad loans stood at Rs 197.8 crore in July-September quarter, up 10.2 percent sequentially and 12 percent on yearly basis. Other income or non-interest income during the quarter shot up 35 percent to Rs 831.1 crore and operating profit surged 37.8 percent to Rs 1,440 crore compared with corresponding period of last fiscal.
Kotak Mahindra Bank said consolidated net profit grew by 27.7 percent year-on-year to Rs 1,202.4 crore and net interest income rose by 17 percent to Rs 2,664.2 crore in July-September quarter.
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