Kotak Mahindra Bank Q2 results: Profit jumps 26% YoY to Rs 2,184 crore, beats Street estimates

NEW DELHI: Kotak Mahindra Bank on Monday reported a 26.27 per cent year-on-year (YoY) rise in standalone net profit at Rs 2,184.48 crore for the September quarter. The private lender had reported a profit of Rs 1,724.48 crore in the year ago quarter.

Analysts polled by ET NOW had projected a profit figure of Rs 1,600 crore.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 16.8 per cent to Rs 3,913 crore crore from Rs 3,350 crore in the year-ago quarter.

At the end of the quarter, gross NPA was 2.55 per cent and net NPA 0.64 per cent.

“The bank has not recognised any NPAs since August 31, 2020, in line with the interim order of the Supreme Court. If the said order was not given effect to, the gross NPA would have been 2.70 per cent and NNPA 0.74 per cent. The bank has, however, made provision for such advance,” Kotak Mahindra Bank said in a statement.

Average savings deposits grew by 32% to Rs 1,06,442 crore for first half of the current fiscal compared with Rs 80,425 crore for the same period last year. Average current account deposits grew by 10% to Rs 36,610 crore from Rs 33,216 crore.

Customer assets, which includes advances and credit substitutes, were Rs 2,18,790 crore against Rs 2,23,305 crore last year. Advances as on September 30, 2020 dipped to Rs 2,04,845 crore from Rs 2,13,299 crore.

On a consolidated basis, consolidated PAT for the quarter increased to Rs 2,947 crore from Rs 2,407 crore, up 22 per cent YoY, 74 per cent of which came from its bank operations.