Kotak Mahindra Bank has announced impressive Q1 results for the current financial year (April-June 2023), showcasing a remarkable 50.62% surge in consolidated profit, amounting to Rs 4,150.19 crore. This significant profit increase can be attributed to a substantial rise in net interest income and an improvement in asset quality.
On a standalone basis, the bank’s net profit soared by 66.7% year-on-year to Rs 3,452.30 crore, surpassing the expectations of analysts who predicted a 53% rise to Rs 3,182 crore.
Kotak Mahindra Bank Q1 Results: Impressive 50.62% Surge in Consolidated Profit
During the June quarter, Kotak Mahindra Bank’s net interest income (NII) witnessed impressive growth, reaching Rs 6,234 crore, marking a 33% year-on-year increase. Furthermore, the bank achieved a Net Interest Margin (NIM) of 5.57% in the same period.
The bank’s average current account deposits rose by 8% to Rs 59,431 crore in the June quarter, while the average savings account deposits slightly declined to Rs 1.2 lakh crore from Rs 1.22 lakh crore in the corresponding period of the previous year. Average fixed deposits, on the other hand, experienced significant growth of 40%, reaching Rs 1.82 lakh crore compared to Rs 1.30 lakh crore a year ago.
Strong Net Interest Income and Asset Quality Boost Profitability
Kotak Mahindra Bank’s advances grew by 19% year-on-year to Rs 3.37 lakh crore in the June quarter, showing robust progress compared to the corresponding quarter of the previous fiscal, where the advances stood at Rs 2.83 lakh crore.
The bank’s asset quality demonstrated improvement in the June quarter. Gross non-performing assets (Gross NPA) decreased to 1.75% from 2.27% in the year-ago quarter. The net NPA stood at 0.43%, which was 0.41% in its previous quarter and 0.69% in the same quarter of the previous year. This positive development reflects the bank’s commitment to maintaining a healthy loan portfolio.
Standalone Net Profit Soars 66.7% YoY, Exceeding Analyst Expectations
Provisions and contingencies for the April-June quarter stood at Rs 365 crore, a significant increase from Rs 23 crore in the year-ago quarter. The provision coverage ratio of the bank stood at 78%, a notable improvement compared to the previous year.
Kotak Mahindra Bank’s Q1 results demonstrate robust financial performance, driven by strong net interest income and efforts to strengthen asset quality.
