Kotak Mahindra Bank Ltd on Monday reported a 23.6% year-on-year increase in its standalone net profit for the December quarter to ?1,595.90 crore, largely led by higher other income and lower tax expenses. Sequentially, however, net profit declined 7.5%.
The private lender’s net interest income (NII) rose 17.2% year-on-year to ?3,429.53 crore during October-December. On a quarterly basis, NII rose 2.4%.
Other income surged 37.34% from a year ago to ?1,341.43 crore during the reporting quarter.
Lower tax outgo also boosted the lender’s bottomline. Tax expenses stood at ?348.17 crore, down 48.8% from a year ago.
Asset quality weakened during the quarter, with gross non-performing assets (NPAs) increasing 31.1% year-on-year to ?5413.20 crore. Gross NPAs as a percentage of advances for the quarter was at 2.46% compared with 2.32% a quarter ago and 2.07% a year ago. Provisions and contingencies of the lender stood at ?444 crore during October-December, up 8.5% from ?407.93 crore in the last quarter.
At 1.45pm, shares of Kotak Mahindra Bank traded 2.3% lower at Rs1,659 on BSE, while the benchmark Sensex was down 0.7% or 284.36 points at 41661.01 points.
News Source:- livemint