Kotak Mahindra Bank Q3 Profit Rises 24%; Asset Quality Deteriorates

Kotak Mahindra on Monday reported a 23.6 percent increase in its PAT (profit after tax) to Rs 1,596 crore for the December-ended quarter from Rs 1,291 crore a year ago.

Shares of the lender tanked over 4 percent following the release of Q3 numbers to an intraday low of Rs 1,630.

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Its Net Interest Income (NII) for the quarter rose by 17 percent to Rs 3,430 crore from Rs 2,926 crore in December 2018. Net Interest Margin (NIM) was at 4.69 percent as against 4.31 percent in the same period of the previous year.

As on 31 December 2019, Kotak Mahindra Bank's gross non-performing assets (NPAs) were at 2.46 percent, which is higher when compared to 2.32 percent in the September-ended quarter and 2.07 percent in December 2018. Its net NPAs were at 0.89 percent.

The bank made provisions and contingencies of Rs 444 crore for the quarter under review as against Rs 407.93 crore in September.CASA ratio at the end of December 2019 stood at 53.7 percent as against 50.7 percent a year ago. TD Sweep deposits were 7.4 percent of the total deposits.

Average Savings deposits of the bank grew by 20 percent to Rs 83,049 crore for the first nine months of 2019-20 when compared to Rs 69,256 crore in the same period a year ago. Average Current Account deposits rose by 19 percent to Rs 33,258 crore in April-December 2019 as against Rs 28,026 crore in April-December 2018.

Advances as on 31 December 2019 were up by 10 percent to Rs 2,16,774 crore from Rs 1,96,432 crore a year ago.

Capital adequacy ratio of the bank, as per Basel III, as on 31 December 2019 is 18.2 percent and Tier I ratio is 17.7 percent.

Kotak Mahindra Bank had a network of 1,539 full-fledged branches in India, branches in GIFT City and DIFC (Dubai) and 2,447 ATMs as of December 2019.