Kotak Mahindra Bank’s standalone net profit for the first quarter of the current fiscal rose 32% to ?1,642 crore as compared to ?1,244.4 crore in the corresponding quarter of the previous fiscal. The net interest income (NII), which is the difference between the interest earned and interest expended, grew 5.8% to ?3,941.8 crore as against ?3,723.8 crore year-on-year (YoY). The private lender’s net interest margin (NIM) for Q1FY22 was at 4.60%.
Asset quality weakened during the quarter as the gross non-performing asset (NPA) stood at 3.56% against 3.25% on sequential basis whereas the net NPA came at 1.28% from 1.21% quarter-on-quarter (QoQ). Provisions and contingencies fell to ?934.7 crore from ?1,179.4 crore QoQ and ?962 crore in the year-ago quarter.
CASA ratio as at June 30, 2021 stood at 60.2% compared to 56.7 % as at June 30, 2020. Average Current Account deposits grew by 28% to ?46,341 crore for Q1FY22 compared to ?36,066 crore YoY. Average Savings deposits grew by 10% to ?116,218 crore for Q1FY22 compared to ?105,673 crore for Q1FY21.
Capital adequacy ratio of the Bank as per Basel III as at June 30, 2021 was 23.1% and Tier I ratio was 22.2%.
Kotak Mahindra Bank said that Covid related provisions as at June 30, 2021 were maintained at ?1,279 crore. In accordance with the Resolution Framework for COVID-19 and MSME announced by RBI, the Bank has implemented total restructuring of ?552 crore as at June 30, 2021.
Shares of Kotak Mahindra Bank were trading over 1% higher at ?1,741 per share on the BSE in Monday’s afternoon deals.
News source:- Livemint