Kotak Mahindra Bank reported a 26% rise in consolidated profit for the quarter ended Sept. 30, while its standalone net interest margin narrowed, putting stronger earnings alongside a decline in a key profitability measure.
The bank’s Oct. 24 results release showed consolidated profit after tax of ₹5,645 crore, up from ₹4,468 crore a year earlier. The board approved unaudited results for the quarter on Oct. 24. Standalone profit after tax reached ₹4,212 crore, a 29% annual increase.
Standalone net interest income rose 16% to ₹8,459 crore. The standalone net interest margin was 4.31%, compared with 4.54% in the same quarter last year and 4.53% in the June quarter. Kotak attributed the lower margin mainly to mobilizing about ₹55,344 crore in FCNR(B) deposits during the quarter. It also reported about ₹16,110 crore in loans through its international branches.
Standalone net advances totaled ₹577,295 crore as of Sept. 30, up 25% from a year earlier. Growth was 19% after excluding loans against FCNR(B) deposits and a portfolio acquired from Kotak mahindra Investments Ltd (KMIL). Slippages declined 24% to ₹1,230 crore. Gross non-performing assets were 1.04% of loans, down from 1.39% a year earlier; net non-performing assets were 0.24%, compared with 0.32%.
LiveMint reported that Kotak Mahindra Bank shares closed at ₹459 on Oct. 29, up 4.3%.
EconoTimes previously covered the bank’s September-quarter profit growth and narrower margin.
