Kotak Mahindra Bank's Q3FY21 Profit Jumps 16% to Rs 1,853 Crore
Kotak Mahindra Bank, India's third largest private sector lender by market capitalisation, clocked a 16.1 per cent year-on-year growth in profit at Rs 1,853.5 crore for the quarter ended December 2020, supported by net interest income (NII) growth and operating profit. In the year-ago quarter, profit was at Rs 1,596 crore.
NII, which the difference between interest earned and interest paid, grew by 16.8 per cent to Rs 4,007 crore in Q3FY21, compared with Rs 3,430 crore in year-ago quarter.
At the end of December 2020, advances stood at Rs 2,14,103 crore, declining 1.2 per cent against Rs 2,16,774 crore as of December 2019. But the bank reported 4.5 per cent sequential growth. Deposits grew by 10.8 per cent year-over-year and 1.4 per cent quarter-over-quarter to Rs 2,65,304 crore in Q3FY21.
Gross non-performing assets (NPA) as a percentage of gross advances declined 29 bps sequentially to 2.26 per cent and net NPA fell 14 bps to 0.50 per cent for the quarter ended December 2020.
The bank has not classified any NPAs since August 31, 2020, following the interim order of Supreme Court. However, the bank has made provision for such advances including towards interest accrued but not collected for the entire period, with moratorium, the bank reported.
The bank reported provisions and contingencies at Rs 599 crore as of December 2020, increasing sharply by 34.9 per cent year-on-year and 62.5 per cent compared with the previous quarter.
As of December 2020, Covid-19 related provisions stood at Rs 1,279 crore, while non-COVID-19 provision dipped into during Q2FY21 and Q3FY21.
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