NEW DELHI: Private bank Kotak Mahindra Bank Ltd has posted a 11 per cent 11 per cent to Rs 2,602 crore in the October–December (Q3) of FY21, from Rs 2,349 in the corresponding quarter of FY20. On a standalone basis, the bank’s net profit jumped 16 per cent in Q3FY21 to Rs 1,854 crore, compared to Rs 1,596 crore in Q3FY20 due to healthy rise in net interest income (NII) and lower provisions.
Net interest income, or core income — the difference between the interest income the bank earns from its lending activities and the interest it pays to its depositors — rose 16.8 per cent year-on-year to Rs 4,007 crore against the estimated Rs 3,497 crore.
The gross bad loans of the bank, without the benefit of the judicial standstill on bad loan recognition, stood at 3.27 per cent of its loan book, sharply higher than 2.46 per cent a year ago and 2.55 per cent in the September quarter. The bank approved one-time restructuring for accounts representing 0.28 per cent of its net advances.
Further, the provisions and contingencies of the lender on a standalone basis for the reporting quarter stood at Rs 599 crore, compared to Rs 444 crore in Q3FY20. At the end of Q3FY21, the bank is holding Rs 1,279 crore as covid related provisions. In a call with the media after the results, the Kotak management said the provisions would take care of the risks that the bank anticipates right now.