The leading private sector lender Kotak Mahindra Bank reported a 6.76% spike 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% to Rs 3,005 crore, attributed to a sharp rise in provisions.
The bank’s net interest income increased by nearly 16% to Rs 6,554 crore, while other income rose by approximately 18% to Rs 2,297 crore. The Net Interest Margin (NIM) for Q3 FY24 was 5.22%.
“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 said in a statement.
Bank’s provisions and contingencies surged by 288.6% 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.
As of December 31, 2023, the Gross Non-Performing Assets (GNPA) were 1.73% and the Net Non-Performing Assets (NNPA) were 0.34%, compared to GNPA of 1.90% and NNPA of 0.43% as at December 31, 2022. The provision coverage ratio stood at 80.6%.
Also, for this quarter, the Capital Adequacy Ratio of the bank, as per Basel III, as of December 31, 2023, was 21.2%, and the Common Equity Tier 1 ratio was 20.1%, both including unaudited profits.