Kotak Mahindra Bank in its March ended results announced today reported a 10% year-on-year fall in standalone net profit at Rs 1,267 crore as against Rs.1,408 crore logged during the same period last year.
For the quarter, total contingencies and provisions came in at Rs. 1047 crore i.e. precisely over 5 times the provisions the bank made in the corresponding quarter a year ago.
Also due to Covid 19, the bank made general provisions to the tune of Rs. 650 crore that is way higher than the requirement stipulated by the Reserve Bank of India.
Net Interest Income (NII) during the quarter increased by 17.25% to Rs 3,560 crore from Rs 3,036 crore in the year-ago quarter.
Gross non-performing assets (NPAs) for the quarter stood increased to 2.25% than in the previous quarter at 2.14%. In the corresponding quarter a year ago, GNPA stood at 2.46%.
Advances grew 7% y-o-y at the bank in the March ended quarter to Rs 2,19,748 crore against Rs 2,05,695 crore in the corresponding quarter last year.
Slippages also fell by more than 50% to Rs. 491 crore during the review period as against Rs 1,062 crore in the same quarter last year.
Also, the bank iterated that 26% of borrowers by value applied for the RBI granted moratorium facility.
Earlier in April, S&P had reaffirmed its outlook on Kotak Mahindra Bank at at BBB- /A-3 with a stable outlook.
Shares of Kotak Mahindra Bank post the quarterly earnings in line with gains on the Bank Nifty was trading firm at Rs. 1204.15, up 44.90 or 3.87%.