The country's leading private sector lender - Kotak Mahindra Bank - on Friday reported net profit of Rs 2,131 crore in quarter ended December 2021, marking an increase of 15 per cent from 1,853.54 crore during the same period last year. The uptick in profit came on the back of sharp reversal in provisioning for bad loans as it wrote back provisions worth Rs 132 crore during the quarter compared with provisioning of Rs 424 crore in the September quarter.
The Mumbai-based lender's net interest income or the difference between interest earned on loans and interest expended on deposits advanced 12 per cent to Rs 4,334 crore versus Rs 3,876 crore in the year ago period. Net interest margin (NIM) for December quarter was at 4.62 per cent.
Bank's asset quality saw an improvement as its gross non-performing assets, as a percentage of total advances, came in at 2.71 per cent versus 3.19 per cent in the previous quarter. Gross NPAs stood at Rs 6,983 crore versus Rs 7,658 crore in September quarter.
Net NPAs came in at 0.79 per cent versus 1.06 per cent in the previous quarter.
On consolidated basis, Kotak Mahindra Bank's profit jumped 31 per cent annually to Rs 3,403 crore.
“Customer Assets, which includes advances and credit substitutes, increased by 20 per cent to Rs 274,569 crore as at December 31, 2021 from Rs 228,791 crore as at December 31, 2020 (Rs 256,335 crore as at September 30, 2021). Advances increased by 18% to Rs 252,935 crore as at December 31, 2021 from Rs 214,085 crore as at December 31, 2020 (Rs 234,947 crore as at September 30, 2021),” Kotak Mahindra Bank said in a press release.
Following Kotak Mahindra Bank’s earnings, its share price rose as much as 3.52 per cent to hit an intraday high of Rs 1,956, outperforming the Sensex which was up 1.24 per cent.
