Fri. Mar 29th, 2024
Kotak Mahindra Bank

Mumbai headquartered private sector Kotak Mahindra Bank on Tuesday posted its earnings report for the second quarter ended September 2021 in which it saw a  7 per cent YOY decline in standalone profit at Rs 2,032 crore due to higher provisions. Other income helped the bank to support the profit and top the analysts’ estimates. However, net income sequentially rose by 24 per cent on the decline in bad loan provisions.

Its net profit for the same quarter in the previous year stood at Rs 2,184 crore. 

Total income during the July-September quarter however rose to  Rs 8,408.87 crore, corresponding to Rs 8,252.71 crore in the same period of 2020-21, Kotak Mahindra Bank said in a regulatory filing.

Standalone net interest income for the reporting quarter rose 3.2 per cent YOY to Rs 4,020.6 crore, matching the street expectations, with 15 per cent YoY (8 per cent QoQ) loan growth. 

“Advances during the quarter increased by 14.7 per cent to Rs 2,34,965 crore, and deposits grew by 11.5 per cent to Rs 2,91,711 crore compared to the year-ago period,” said the bank in its BSE filing on Tuesday.

Analysts polled by CNBC-TV18 saw the profit to come at Rs 1,792.2 crore and net interest income was expected to be Rs 4,008.1 crore for the quarter ended. 

Asset quality improved during the reporting quarter with gross non-performing assets as a percentage of gross advances coming down 40 bps QoQ to 3.2 per cent and the net NPA  lowered 20 bps to 1.1 per cent on a sequential basis. 10 basis points = 0.01 percent.

The bank’s provisions for bad loans and contingencies saw a rise to Rs 423.99 crore from Rs 333.22 crore that was set aside in the prior year period. 

On a consolidated basis, the bank’s net profit increased marginally to Rs 2,989 crore in Q2FY22, up from Rs 2,947 crore in the previous fiscal quarter. For the quarter, total income increased to Rs 15,341.65 crore from Rs 13,548.33 crore.

“For Q2FY22, the bank’s contribution to the consolidated PAT (profit after tax or net profit) was Rs 2,032 crore. The subsidiaries and associates net contribution was 32 per cent of the consolidated PAT,” the bank said in a release.

The stock of Kotak Mahindra Bank ended its normal trading hours up by 2.62% at Rs 2210.96 from its previous day close of Rs 2154.50. 

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.

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