Private sector lender Kotak Mahindra Bank reported a 29% year-on-year increase in standalone net profit to ₹4,212 crore for the September quarter, compared with ₹3,253 crore in the corresponding period last year.
Net interest income (NII) rose 16% to ₹8,459 crore from ₹7,311 crore, while net advances increased 25% to ₹5,77,295 crore from ₹4,62,688 crore.
Deposits grow 23%
The bank’s period-end deposits grew 23% year-on-year to ₹6,51,491 crore from ₹5,28,776 crore. The current account and savings account (CASA) ratio stood at 38.2%, compared with 42.3% a year earlier.
Customer assets, comprising advances including inter-bank participation certificates (IBPC) and bills rediscounted (BRDS), along with credit substitutes, increased 23% to ₹6,26,801 crore from ₹5,09,399 crore.
Net interest margin declines
Net interest margin (NIM) declined to 4.31% from 4.54%, largely due to the mobilisation of foreign currency non-resident (FCNR(B)) deposits during the quarter.
The bank mobilised FCNR(B) deposits aggregating ₹55,344 crore and provided loans worth ₹16,110 crore through its international branches.
Excluding loans provided against FCNR(B) deposits and the loan portfolio acquired from Kotak Mahindra Investments Ltd, net advances grew 19% year-on-year.
Asset quality improves
The bank’s gross non-performing assets (GNPA) ratio improved to 1.04% from 1.39%, while the net non-performing assets (NNPA) ratio declined to 0.24% from 0.32%.
Slippages fell 24% to ₹1,230 crore from ₹1,629 crore. Provisions declined 15% to ₹803 crore from ₹947 crore in the corresponding period last year. The provision coverage ratio stood at 78%, compared with 77%.
Capital position remains strong
The bank reported a capital adequacy ratio of 21.9%, with its Common Equity Tier 1 ratio at 21.4%.
The bank’s performance reflected growth in profits, interest income, deposits and advances, alongside improvements in asset quality during the quarter.