Kotak Mahindra’s Q3 consolidated net up 6.76% to Rs 4,265 cr; NII jumps 16%

Private sector lender Kotak Mahindra Bank reported a 6.76 per cent increase in its consolidated net profit for the September-December quarter, reaching Rs 4,265 crore, as compared to Rs 3,995 crore reported during the same period of the previous year.

On a standalone basis, the net profit for the reporting period was up 7.62 per cent to Rs 3,005 crore, attributed to a sharp rise in provisions.

Provisions and contingencies surged by 288.6 per cent year-on-year to Rs 579 crore, primarily due to Rs 143 crore (post-tax) towards Alternate Investment Funds, as mandated by the Reserve Bank of India in its circular dated December 19, 2023.

The bank’s net interest income increased by nearly 16 per cent to Rs 6,554 crore, while other income rose by approximately 18 per cent to Rs 2,297 crore.

The Net Interest Margin (NIM) for Q3 FY24 was 5.22 per cent.

“Advances (including IBPC & BRDS) increased by 19 per cent year-on-year to Rs 3,72,464 crore as at December 31, 2023, from Rs 3,13,154 crore as at December 31, 2022,” the bank stated.

As of December 31, 2023, the Gross Non-Performing Assets (GNPA) were 1.73 per cent and the Net Non-Performing Assets (NNPA) were 0.34 per cent (compared to GNPA of 1.90 per cent and NNPA of 0.43 per cent as at December 31, 2022). The provision coverage ratio stood at 80.6 per cent.

The Capital Adequacy Ratio of the bank, as per Basel III, as of December 31, 2023, was 21.2 per cent, and the Common Equity Tier 1 (CET I) ratio was 20.1 per cent (both including unaudited profits).

(Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)

First Published: Jan 20 2024 | 3:31 PM IST