Kotak Mahindra Bank, one of India’s leading financial institutions, has announced a remarkable 24% increase in its standalone net profit for the quarter ending on September 30. The net profit reached ₹3,191 crore, showcasing the bank’s strong performance during this period.
This substantial growth can be attributed to improved core income and a decline in non-performing loans. In comparison, during the same quarter of the previous fiscal year, the bank had reported a net profit of ₹2,581 crore. These impressive figures were disclosed in a regulatory filing.
Moreover, Kotak Mahindra Bank reported a significant uptick in its total income, which amounted to ₹13,507 crore for the July-September period. This represents a substantial increase from ₹9,925 crore reported in the corresponding quarter of the previous year.
The bank’s net interest income, a critical indicator of its financial health, also witnessed a considerable surge. It rose 23% to ₹6,297 crore when compared to ₹5,099 crore recorded in the same period last year. Furthermore, the net interest margin for the quarter increased to 5.22%, slightly higher than the 5.17% from the previous financial year’s corresponding period.
In terms of assets quality, Kotak Mahindra Bank showcased an impressive improvement. The gross non-performing assets (or bad loans) declined to 1.72% of the gross advances at the end of September 2023, compared to 2.08% a year ago. Similarly, the net non-performing assets dropped to 0.37% from 0.55% in the same quarter of the previous fiscal year.
The bank’s strong financial position is evident from its capital adequacy ratio, which stood at 21.7% as of September 30, 2023. This indicates that the bank possesses ample capital to cover potential risks and maintain its stability.
On a consolidated basis, Kotak Mahindra Bank reported a 24% rise in its net profit to ₹4,461 crore during the September quarter. This is a notable increase from ₹3,608 crore recorded in the same period of the previous fiscal year. Additionally, the bank’s total income on a consolidated basis increased to ₹21,560 crore compared to ₹17,435 crore in the year-ago quarter.
As Kotak Mahindra Bank continues to demonstrate strong financial performance and improvement across various metrics, it solidifies its position as a leading player in India’s banking industry.