Kotak Mahindra Bank September quarter profit rises 24% on healthy loan growth

Kotak Mahindra Bank, the country's third largest private lender, on Saturday reported net profit of Rs 3,191 crore for second quarter of current financial year, marking an upside of 23.64 per cent from Rs 2,581 crore during the same period last financial year. The bank's profit rose on account of healthy loan growth and robust core income.

Kotak Mahindra Bank's loan portfolio increased 21 per cent annually to Rs 3,57,012 crore as at September 30, 2023 from Rs 2,96,117 crore in the year ago period.

Unsecured retail advances (incl. retail micro finance) as a percentage of net advances stood at 11 per cent as at September 30, 2023. (8.7 per cent as at September 30, 2022), the bank said in a statement.

The bank's core income or net interest income (NII), the difference between interest earned on loans and interest expended on deposits, rose 23 per cent to Rs 6,297 crore from Rs 5,099 crore in the corresponding period a year ago and net interest margin (NIM) came in at 5.22 per cent at the end of September quarter.

The bank's asset quality showed a slight improvement as its gross non-performing assets (NPA), as a percentage of total advances, came in at 1.72 per cent compared with 1.77 per cent in the previous quarter. Its net NPAs came in at 0.37 per cent versus 0.40 per cent in June quarter.

In absolute term gross NPAs came in at Rs 6,087.23 crore.

On a consolidated basis, Kotak Mahindra Bank's profit rose 24 per cent to Rs 4,461 crore from Rs 3,608 crore in the year ago period.

Kotak Mahindra Bank shares ended 1.8 per cent higher at Rs 1,769.55 on Friday ahead of its earnings announcement.