Kotak Mahindra Bank Q3 profit rises 16 pc to Rs 1,854 cr

Kotak Mahindra Bank income rose to Rs 8,124.92 crore during the quarter under review from Rs 8,077.03 crore in the year-ago period, the bank said.

New Delhi: Private sector lender Kotak Mahindra Bank on Monday reported a 16 per cent increase in standalone net profit at Rs 1,854 crore for the third quarter ended December, as bad loan situation improved.

The bank had posted a profit of Rs 1,596 crore during the October-December period of the previous financial year.

Total income rose to Rs 8,124.92 crore during the quarter under review from Rs 8,077.03 crore in the year-ago period, Kotak Mahindra Bank said in a statement.

"Net Interest Income (NII) for Q3FY21 increased to Rs 4,007 crore, from Rs 3,430 crore in Q3FY20, up 17 per cent. Net Interest Margin (NIM) for Q3FY21 was at 4.51 per cent," it said.

Gross non-performing assets (NPAs) at the quarter-end declined to 2.25 per cent of the total advances as compared with 2.46 per cent at the end of the third quarter of 2019-20.

Net NPAs too eased to 0.50 per cent of the assets in October-December 2020, against 0.89 per cent a year ago.

COVID-19 related provisions as on December 31, 2020, stood at Rs 1,279 crore. In accordance with the Resolution Framework for COVID-19 announced by the Reserve Bank of India in August last year, the bank has approved, for certain eligible borrowers, one-time restructuring of 0.28 per cent of net advances, it said.

On the consolidated basis, the bank's profit increased by 11 per cent to Rs 2,602 crore as compared to Rs 2,349 crore in the same period a year ago.

Total income during the October-December period rose to Rs 14,835 crore from Rs 13,542 crore in third quarter of 2019-20.

Capital adequacy ratio of the bank, including unaudited profits, as per Basel-III, as on December 31, 2020, was 21.5 per cent and tier-I ratio was 20.9 per cent.

(PTI)