Kotak Mahindra Bank Posted 12.3 % Rise in First Quarter

Private sector lender Kotak Mahindra Bank posted a 12.3 percent rise in its first-quarter net profit missing estimates, on the back of a 130.5 percent increase in provisions. The bank posted a net profit of Rs 1,024.94 crore in Q1 compared to Rs 912.73 crore YoY.

The bank’s net interest income grew by 15 percent to Rs 2,583 crore in Q1 from Rs 2,246 crore in the year ago period. Provisions rose to Rs 469.63 crore in the quarter ended June 30 from Rs 203.74 crore YoY.

A Reuters poll had estimated net profit to see a 28 percent increase to Rs 1,165.4 crore in Q1 of FY19.

On a consolidated basis (including subsidiaries), Kotak Bank posted a 17 percent growth YOY in its net profit at Rs 1,574 crore for Q1.

bank's capital adequacy ratio, including unaudited profits, as per Basel Ill, as on June 30, 2018 was at 18.3 percent, while Tier I ratio was at 17.6 percent.

The net interest margin stood at 4.3 percent for the first quarter. Advances as on June 30, 2018 were up 24 percent to Rs 1.76 lakh crore.

Asset quality stable

The bank’s asset quality remained stable. Gross non-performing assets (NPA) ratio dropped to 2.17 percent in Q1 from 2.58 percent a year ago. Net NPA ratio declined to 0.86 percent from 1.25 percent YoY.

There was a decrease in the gross NPA and net NPA ratios from 2.22 percent and 0.98 percent respectively on a sequential basis as well.

Gross NPA stood at Rs 3,899.45 crore in Q1 compared to Rs 3,726.62 crore a year ago. Net NPA for Q1 stood at Rs 1 527.14 compared to Rs 1,777.93 crore YoY.