Kotak Mahindra Bank Q2 profit jumps 51%

Kotak Mahindra Bank reported a 51 percent year-on-year jump in the net profit at Rs 1,724.5 crore for the quarter ended September 30, 2019.

A CNBC-TV18 poll had estimated the profit to the tune of Rs 1,555.2 crore for Q2FY20.

The private lender had reported a net profit of Rs 1,141.65 crore in the corresponding quarter of the previous financial year.

Net interest income (NII) of the bank jumped 25.2 percent, coming at 3,349.6 crore against 2,676.3 crore in the corresponding quarter of FY19. Net interest margin (NIM) for Q2FY20 came at 4.61 percent, up from 4.19 percent in Q2FY19.

The bank said, its CASA ratio as on September 30, 2019, stood at 53.6 percent, compared to 50.2 percent as on September 30, 2018.

Average savings deposits grew by 20 percent YoY to Rs 80,425 crore for Q2FY20 compared to Rs 66,892 crore for Q2FY19. The average current account deposits grew by 22 percent to Rs 33,216 crore for Q2FY20 compared to Rs 27,231 crore for Q2FY19.

However, the bank's non-performing assets (NPAs) increased slightly during the September quarter.

Gross NPA stood at 2.32 percent in the September quarter against 2.19 percent in the June quarter. Net NPA came at 0.85 percent against 0.73 percent quarter-on-quarter.

In monetary terms, gross NPA stood at Rs 5,033.5 crore against Rs 4,613.5 crore quarter-on-quarter (QoQ), whereas Net NPA came at Rs 1,811.4 crore against Rs 1,524.4 crore (QoQ).

Provisions stood at Rs 408 crore against Rs 316.8 crore (QoQ) and Rs 354 crore (YoY).

The net interest margin improved slightly, coming at 4.61 percent against 4.49 percent (QoQ).