SOURCE : NEW18 NEWS
Last Updated:January 18, 2025, 15:07 IST
Kotak Mahindra Bank Q3 Results: On a standalone basis, its net profit increases to Rs 3,304 crore from Rs 3,005 crore in the year-ago period.
Kotak Mahindra Bank Q3 Results.
Kotak Mahindra Bank Q3 Results: Kotak Mahindra Bank on Saturday reported a 10.22 per cent rise in its consolidated net profit to Rs 4,701 crore for the third quarter ended December 31, 2024. Its net interest income, the difference between interest interest expended and interest earned, also rose 10 per cent to Rs 7,196 crore.
Its net profit had stood at Rs 4,265 crore in the year-ago period and Rs 5,044 crore in the preceding September 2024 quarter.
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On a standalone basis, the private sector lender’s net profit increased to Rs 3,304 crore from Rs 3,005 crore in the year-ago period but was marginally down when compared with the September quarter’s Rs 3,343 crore.
Kotak Mahindra Bank’s gross non-performing assets (gross NPAs) ratio, a key gauge of asset quality, worsened slightly to 1.50 per cent at the end of December from 1.49 per cent at the end of September.
The overall provisions increased to Rs 794 crore from Rs 579 crore in Q3 FY24 and Rs 660 crore in Q2 FY25.
Its net interest margin shrank to 4.93 per cent from 5.22 per cent a year earlier, but was slightly higher than the 4.91 per cent reported in the previous quarter.
The lender’s loans rose 16 per cent in value terms in the December quarter, while deposits were up 15 per cent. The loan growth comes despite restrictions placed on Kotak since April 2024 by the central bank, which prevent it from taking on new digital clients and issuing credit cards. The penalty was imposed for gaps in its IT infrastructure.
But Kotak’s provisions and contingencies, or funds set aside for potential bad loans, jumped 37 per cent to 7.94 billion rupees.
Most Indian banks saw asset quality worsen during the April-October period last year, with bad loans rising primarily in the microfinance and unsecured segments.
The interest earned by Kotak Mahindra Bank during Q3 FY25 rose 14.75 per cent to Rs 16,633.14 compared to Rs 14,494.96 crore in the same period of the previous financial year, the filing showed. In the second quarter, the interest earned stood at Rs 16,426.97 crore, according to the stock filing.
Earlier this week, private lender Axis Bank missed quarterly profit estimates on slower loan growth and higher bad loan provisions.
