Kotak Mahindra Bank Ltd (KMBL) reported a 13% increase in standalone net profit at ₹4,027 crore for the March quarter, driven by higher interest income and improved asset quality.
Net Interest Income rose 8% to ₹7,876 crore, while Net Interest Margin contracted to 4.67% from 4.97%. Cost of funds declined to 4.45% from 5.09%.
Fee income and asset quality
Fees and services income increased to ₹2,767 crore from ₹2,616 crore. Provisions declined sharply to ₹516 crore from ₹909 crore, with annualised credit cost easing to 0.39% from 0.64%.
Gross non-performing assets fell by 22 basis points to 1.20%, while net NPA declined by 6 basis points to 0.25%. Slippages reduced to ₹1,018 crore from ₹1,488 crore.
Provision coverage ratio stood at 79% (78%), while capital adequacy ratio was strong at 22.4%.
Growth in advances and deposits
Net advances grew 16% to ₹4,96,009 crore. Customer assets, including advances and credit substitutes, increased to ₹5,45,716 crore from ₹4,77,855 crore.
Total deposits rose to ₹5,38,301 crore from ₹4,99,055 crore. Average current deposits grew 18% to ₹77,058 crore, while average savings deposits increased to ₹1,22,364 crore from ₹1,04,379 crore.
Average term deposits stood at ₹3,26,403 crore compared with ₹2,80,448 crore. CASA ratio remained stable at 43.3% (43.0%).
Consolidated performance and dividend
On a consolidated basis, net profit increased 6% to ₹5,238 crore. Including a gain of ₹185 crore from the divestment of Infina Finance Pvt Ltd, consolidated profit stood at ₹5,423 crore.
The Board recommended a dividend of ₹0.65 per share.