Kotak Mahindra Bank Q1 profit rises 26% to Rs 2,071 crore

Private lender Kotak Mahindra Bank on Saturday reported a 26 per cent rise in its net profit to Rs 2,071.15 crore in the first quarter of the current fiscal year helped by a decline in bad loans.

The bank had posted a net profit of Rs 1,641.92 crore in the same quarter of financial year 2021-22.

Total income during the April-June quarter of 2022-23 improved to Rs 8,582.25 crore, from Rs 8,062.81 crore in the same quarter in FY22, Kotak Mahindra Bank said in a regulatory filing.

Interest income too increased to Rs 7,338.49 crore during the reported quarter, from Rs 6,479.78 crore in the year-ago period.

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Net Interest Income (NII) for Q1FY23 rose to Rs 4,697 crore, from Rs 3,942 crore in Q1FY22, registering a growth of 19 per cent, it said, adding, Net Interest Margin (NIM) was 4.92 per cent for the quarter.

On asset quality front, gross non-performing assets (NPAs) declined to 2.24 per cent of the gross advances as of June 30, 2022, from 3.56 per cent on June 30, 2021.

Net NPAs or bad loans eased to 0.62 per cent from 1.28 per cent.

Provisions for bad loans and contingencies were down multi-fold at Rs 23.59 crore in the quarter, as against Rs 934.77 crore put aside in the year-ago quarter.

The provision coverage ratio stood at 72.6 per cent, it said.

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"The bank held an aggregate Covid-19 related provision of Rs 547 crore as of March 31, 2022. Based on the improved outlook, the bank has reversed provisions amounting to Rs 65 crore during the quarter ended June 30, 2022 (NIL during the quarter ended 30th June, 2021 and Rs 453 crore during the quarter ended 31st March, 2022)," it said.

On a prudent basis, it said, the bank continue to hold provision of around Rs 482 crore as on June 30, 2022 against the potential impact of Covid-19.

During the quarter, Kotak Mahindra Bank Group including Kotak Life Insurance on consolidated basis posted a 53 per cent surge in net profit at Rs 2,755 crore, as against Rs 1,806 crore in the same period a year ago.

Consolidated Capital adequacy ratio as per Basel III as on June 30, 2022 was 23.3 per cent and CET I ratio was 22.4 per cent excluding unaudited profits, it said.