Mumbai: Private lender Kotak Mahindra Bank on Monday reported a 33 per cent rise in standalone profit in the April-June period to Rs 1,360.2 crore, driven by lower provisions and higher net interest income. The net profit in the corresponding quarter of last year was Rs 1,024.94 crore. The net interest income or core income during Q1FY20 increased 22.8 percent to Rs 4,159.1 crore with loan growth of 18 percent year-on-year. The bank’s net interest margin (NIM) too expanded to 4.49 percent and was highest in last 17 quarters.
The lender’s asset quality remained stable during the quarter. The gross non-performing assets ratio stood at 2.19 percent compared to 2.14 percent in the quarter ended March. Its net NPA ratio dipped to 0.73 percent from 0.75 percent in the three-month period.
Provisions and contingencies declined to Rs 316.76 crore in June quarter 2019, from Rs 469.63 crore in the corresponding period last fiscal, but sequentially the same increased from Rs 171.26 crore in March quarter.
Slippages across sectors were at Rs 750 crore as of June compared with Rs 900 crore as of March.
The lender’s loan book grew 18 per cent on a yearly basis to Rs 2.08 lakh crore as of June. Marginal moderation was witnessed in home loan (including loan against property), small business including personal loans and commercial vehicle whereas agriculture witnessed a faster traction at 22 percent YoY.
Deposit growth also remained healthy at 22.8 percent YoY, led by healthy growth of around 22.5 per cent YoY in saving and 27.1 percent YoY in current deposits. Accordingly, CASA ratio stood at 50.7 percent, an increase of 40 bps YoY and decline of 180 bps QoQ.
