Kotak Mahindra Bank’s consolidated net profit rises 36% in Q4FY21

Kotak Bank

Kotak Mahindra Bank, a Private sector lender Monday reported a consolidated net profit of Rs 2,589 crore in the March quarter of FY21. The net profit is up 36 per cent from Rs 1,905 crore in the corresponding period last financial year.

On a standalone basis, the bank’s net profit in the same period increased 33 per cent to Rs 1,682 crore from Rs 1,267 crore in the last year. This is due to a potential increase in other income and a stable net interest income (NII).

The lender’s NII grew by 8 per cent in Q4FY21 to Rs 3,843 crore, from Rs 3,560 crore in Q4FY20 while the net interest margin for the reporting quarter was 4.39 per cent. Other income of the lender went up by 31 per cent to Rs 1,949 crore from Rs 1,489 crore in the same period last financial year.

Provisions and contingencies for the bank have risen up in the Q4FY21 to Rs 1,179 crore which was Rs 1,047 same quarter last year and Rs 419 in the previous quarter. Total provisions held by the bank, including specific, standard, Covid-19 related, and other provisions, stood at Rs 7,021 crore as of March 31, 2021.

The gross non-performing assets (GNPA) as a per cent of advances at the end of March quarter is 3.25 per cent, which is 100 basis points (bps) higher than the previous year, but 2 bps lower sequentially. Moreover, net NPAs of the bank is 1.21 per cent, up 50 bps from last year, but down 3 bps sequentially.