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Kotak Mahindra Bank net rises 51 per cent to Rs 1,724 crore

President and Group chief financial officer Jaimin Bhatt said the slippages for H1 stood at Rs 1,800 crore, which is 1.7 per cent of the advances.

Private lender Kotak Mahindra Bank on Tuesday reported a 51 per cent year-on-year rise in its net profit to Rs 1,724.48 crore for the quarter ended September, on the back of a 25 per cent rise in its net interest income and cut in corporate taxes. Net interest income (NII) — the difference between interest earned and interest expended — saw an increase of 25 per cent year-on-year to Rs 3,350 crore. Net interest margin (NIM) stood at 4.61per cent—higher by 42 basis points y-o-y.

Gross non-performing assets (NPAs) increased 15 bps sequentially to 2.17 per cent, while net NPAs inched up 11 bps to 0.82 per cent. Provisions increased 35 per cent sequentially to Rs 473.10 crore in Q2FY20.

President and Group chief financial officer Jaimin Bhatt said the slippages for H1 stood at Rs 1,800 crore, which is 1.7 per cent of the advances. For the quarter, the figure stands at roughly Rs 1,000 crore, he added. He said the uptick in NPAs were across all segments. The bank’s advances increased 15 per cent to Rs 2.13 lakh crore. Average savings deposits grew by 20 per cent to Rs 80,425 crore, and average current account deposits grew 22 per cent to Rs 33,216 crore. —FE