Kotak Mahindra Bank Q3 profit up 39 pct, asset quality improves

| Updated: Jan 25, 2017 20:23 IST

New Delhi [India], Jan 25 (ANI): Largest private sector lenders Kotak Mahindra Bank on Wednesday announced its profit on standalone basis up by 38.6 percent year-on-year to Rs. 880 crore in October-December quarter. The profit is supported by revenue, other income, operating profit and lower provisions. Asset quality improvement and strong earnings lifted stock price nearly percent percent intraday Wednesday. The net interest income during the quarter grew by 16.1 percent to Rs. 2,050.3 crore year-on-year, with loan growth of 12 percent (2.6 percent QoQ) at Rs. 1.29 lakh crore. Retail contribution to advances was 40 percent and the rest was by corporate. Also, the other income jumped 26 percent to Rs. 910.22 crore, largely driven by fees and services business that increased 26.5 percent to Rs. 725 crore YoY. Operating profit surged 26.8 percent to Rs. 1,527.7 crore compared with year-ago period. Taking the absolute terms, the gross NPA declined marginally to Rs. 3,177.88 crore from Rs. 3,180.66 crore and net NPA fell sharply by nine percent to Rs. 1,379.07 crore quarter-on-quarter. Provisions for bad loans slipped three percent quarter-on-quarter and 18.4 percent year-on-year to Rs. 192 crore in the quarter ended December 2016. The private sector lender said it has not participated in corporate debt restructuring and not transferred any loan asset to asset reconstruction companies. It has also not restructured any account under 5:25 scheme during the quarter. The bank further said restructured loans worth Rs. 146 crore were considered standard during the quarter, which was 0.11 percent of net advances. Profit on consolidated basis grew by 34 percent year-on-year to Rs. 1,266.6 crore and net interest income rose by 15.9 percent to Rs. 2,747 crore in Q3. (ANI)