Kotak Mahindra Enters The Big League: Reports 64.5% Increase In Profits | Earned Rs 2767 Crore From Interests!

The private lender Kotak Mahindra Bank recently released its quarterly earnings report for the March 2022 ending quarter, largely exceeding analysts’ profit estimates for the period.

The bank’s asset quality for the quarter improved on a yearly basis as well as compared to the previous quarter of December, despite the Covid-19 provisions, indicating the bank’s strong performance in Q4 of FY22.

March Quarter Financial Performance

The Mumbai-based private lender Kotak Mahindra Bank’s net profit surged 64.5% on a YoY basis to Rs 2,767.4  crore, led by an increased net interest income and a writeback of provisions, stated the bank.

The lender conducted a Rs 453 crore worth writeback of Covid provisions in the quarter, compared to Rs 734 crore done in the March 2021 quarter.

Its NII or net interest income, an important financial figure, climbed 17.6% to Rs 4,521 crore on a YoY basis, while the non interest income surged 21.4% YoY to Rs 1,826 crore in the quarter.

Additionally, NIM, an indicator of company’s profitability, rose 39 basis points to 4.78% in the period.

Kotak Mahindra’s asset quality improved on a sequential basis, as its gross NPA fell 91 bps on a YoY basis to 2.34%, and net NPA improved from 1.21% to 0.64% in the March quarter.

The company’s gross NPA in absolute terms also reduced significantly from Rs 6,470 crore to Rs 956 crore, and the net NPA on this measure fell from Rs 1737 crore to Rs  ?969 crore in the quarter under focus.

The bank’s board of directors recommended a dividend of Rs 1.1/share for the financial year ending March 31, 2022.

In terms of credit growth, the lender’s advances increased 21% on a YoY basis and 7% on a sequential one to Rs 2.71 trillion, while the growth in the ‘home loan and loan against property’ segment surged 39% YoY.