Kotak Bank profit up 67 per cent on higher interest income
Fees and services income rose 20% to Rs 1,827 crore and CASA ratio stood at 49%.Kotak Mahindra Bank’s asset quality was largely stable during the quarter.
MUMBAI: Kotak Mahindra Bank, the country’s fourth largest private lender, on Saturday announced a 67% rise in net profit to Rs 3,452 crore for the quarter that ended June, helped by higher interest income. Net interest income, the difference between interest earned and interest paid, surged 33 per cent Rs 6,234 crore during the quarter compared to Rs 4,697 crore in the same quarter the previous year.
Its net interest margin grew to 5.57% from 4.92% for the same quarter last year. Fees and services income rose 20% to Rs 1,827 crore and the CASA ratio stood at 49%. Kotak Mahindra Bank’s asset quality was largely stable during the quarter.
Its gross non-performing assets (NPA) ratio was at 1.77% at the end of June, versus 1.78% at the end of March, while the net NPA ratio was 0.40%, compared with 0.37% at the end of the prior three months.
Bank’s advances increased 19% to Rs 3.37 lakh crore as of June 30, 2023, from Rs 282,665 crore as of June 30, 2022. Term deposits of the bank jumped by 48.5% year-on-year to Rs 1.96 lakh crore. Unsecured retail advances, including retail microfinance, climbed 10.7% of advances from 7.9%.
The capital adequacy ratio under Basel III stood at 23.3%, of which and CET 1 ratio was at 22.3% and the consolidated capital and reserves and surplus stood at Rs 1,16,500 crore from Rs 1,00,078 crore in June 2022. Consolidated customer assets which comprises advances and credit substitutes grew 19 per cent from Rs 3,39,606 crore in June 2022 to Rs 4,05,775 crore in June 2023.