Kotak Mahindra Bank reported a net profit of Rs 2,184.48 crore in the July-September period on Monday, an increase of 26.67 percent from the same period a year ago. The private sector bank’s profit jump during the quarter came due to lower provision for non-performing assets – or bad loans. Kotak Mahindra Bank shares fell 2.55 per cent to Rs 1,347.75 on the BSE. (Track Kotak Mahindra Bank shares)
The provisions of Kotak Mahindra Bank came to Rs 368.59 crore in the three-month period ended September 30, compared to Rs 962 crore in the previous quarter.
According to a Mumbai-based Kotak Mahindra Bank regulatory filing, the difference between net interest income – accrued interest and interest increased by 17 per cent to Rs 3,913.21 crore from Rs 3,349.59 crore in the year-ago period.
The market value improved the property quality of the country’s third largest private sector lender.
The gross non-performing assets of the lender as a percentage of total advances fell to 2.55 per cent in the July-September period as compared to 2.70 per cent in the previous quarter.
The total gross NPA was Rs 5,335.95 crore in the previous quarter, compared to Rs 5,619.33 crore in the previous quarter.
Net NPA as a percentage of total NPA came down to 0.64 percent in the September quarter, compared to 0.87 percent in the April-June period.
Kotak Mahindra Bank said its coronavirus epidemic provisions stood at Rs 1,279 crore (0.62 per cent of net advances) as of September 30.
The non-specific provisions for the NPA standard in advance (including COVID-19 provisions) amounted to 177 percent of net NPA.
At 1:56 pm, Kotak Mahindra Bank shares fell 0.76 per cent to close at Rs 1,372.50 on the BSE, while the S&P BSE Sensex index lost 1.44 per cent to trade broad-based.