Kotak Mahindra Bank Q1 profit rises 26 per cent to Rs 2,071 crore

MUMBAI: Private sector lender Kotak Mahindra Bank on Saturday reported a standalone net profit of Rs 2,071 crore for the first quarter of the current financial year, registering a year-on-year growth of 26 per cent. The bank's profit jumped on the back of lower provisions and improvement in asset quality performance.

The bank reported consolidated profit after tax for the first quarter of 2022-23 at Rs 2,755 crore as against Rs 1,806 crore recorded in the corresponding quarter of the previous year, registering a year-on-year growth of 53 per cent. At the consolidated level, the Return on Assets (ROA) (annualised) was 2.04 per cent for Q1 FY23 as compared to 1.49 per cent for Q1 FY22.

The Board of Directors of Kotak Mahindra Bank approved the standalone and consolidated results for Q1 FY23 at the Board meeting held in Mumbai on Saturday. At the standalone level, the bank's net interest income (NII) for Q1 FY23 increased to Rs 4,697 crore, from Rs 3,942 crore in Q1 FY22, registering a growth of 19 per cent.

Net Interest Margin (NIM) stood at 4.92 per cent for Q1 FY23. Customer assets, which include advances and credit substitutes, increased by 29 per cent to Rs 303,629 crore as on June 30, 2022 from Rs 2,35,340 crore as on June 30, 2021.

Advances increased by 29 per cent to Rs 280,171 crore as on June 30, 2022 from Rs 217,447 crore as on June 30, 2021. Average current deposits grew to Rs 55,081 crore for Q1 FY23 compared to Rs 46,341 crore for Q1 FY22 up 19 per cent.

Average Fixed Rate Savings deposits were Rs 114,237 crore as on June 30, 2022, which is 8 per cent higher when compared with Rs 105,724 crore recorded on June 30, 2021. Average term deposits rose by 16 per cent from Rs 112,406 crore for Q1 FY22 to Rs 130,035 crore for Q1 FY23.

As on 30th June 2022, COVID-related provisions stood at Rs 482 crore. In accordance with COVID Resolution Framework announced by RBI, the Bank has standard restructured fund-based outstanding of Rs 379 crore (0.14 per cent of advances). Under the MSME Resolution Framework, the Bank has standard restructured fund-based outstanding of Rs 697 crore (0.25 per cent of advances) as of June 30, 2022.

As of June 30, 2022, GNPA was 2.24 per cent NNPA was 0.62 per cent. Credit cost on advances for Q1 FY23 was 16 bps (annualised) (excluding COVID and restructuring provision/reversal). The provision coverage ratio stood at 72.6 per cent. The capital adequacy ratio of the Bank, as per Basel III stood at 22.1 per cent as of June 30, 2022.