What Led To 65% Jump In Kotak Mahindra Bank's Profit In March Quarter

Kotak Mahindra Bank on Wednesday posted a 65 per cent jump in standalone net profit at Rs 2,767.40 crore in the three months ended March 2022.

The private sector lender had reported a net profit of Rs 1,682.37 crore in the same quarter of the previous fiscal year.

Here is what led to jump in profit in March quarter

Kotak Mahindra Bank's provisions for bad loans during the March quarter saw a write-back of Rs 306.21 crore compared with provisioning of Rs 734 crore in the year ago period. 

Healthy NII Growth

Its net interest income or the difference between interest earned on loans and paid on deposits saw healthy growth of 18 per cent which came in at Rs 4,521 crore compared with Rs 3,843 crore, during the same period last year.

Net Interest Margin (NIM) was 4.78 per cent for March quarter. Fees and services for last quarter of previous fiscal was Rs 1,697 crore, up 23 per cent year-on-year (YoY). Operating profit for was Rs 3,340 crore, up 13 per cent YoY.

Asset Quality Improvement

Kotak Mahindra Bank's asset quality saw an improvement as its gross non-performing assets (NPA), as a percentage of total advances, came in at 2.34 per cent versus 2.71 per cent in the previous quarter and 3.25 per cent, during the same quarter last year. 

Total gross NPAs stood at Rs 6,469.74 crore versus Rs 6,982.80 crore in the previous quarter and Rs 7,425.51 crore in the year ago period. Its net NPAs came in at 0.64 per cent compared with 0.79 per cent in the previous quarter.

“Average current deposits grew to Rs 49,776 crore for FY22 compared to Rs 39,481 crore for FY21 up 26 per cent. Average fixed rate savings deposits was Rs 1,10,988 crore as at March 31, 2022 up 11 per cent from Rs 99,907 crore.

Customer Additions

Net Customer additions in March quarter was 20 lakh against that of 11 lakh in same quarter last year. Customers as on March 31, 2022 were 3.27 crore, the Mumbai-based lender said in a press release.