Profit ratio

Kotak Mahindra Bank’s Q1 net profit increases 26%

Kotak Mahindra Bank’s standalone net profit for the first quarter increased by 26% to ₹2,071 crore.

Net interest income (NII) increased by 19% to ₹4,697 crore. Net interest margin (NIM) was 4.92% for the first quarter of FY23, the bank said in a filing.

Client assets, which include advances and credit substitutes, increased by 29% to ₹3,03,629 crore. Advances increased by 29% to ₹2,80,171 crore from the prior year period. The CASA ratio at June 30 was 58.1%. Average current deposits increased by 19% to ₹55,081 crore.

Average fixed rate savings deposits increased by 8% to ₹1,14,237 crore. Term deposit average increased by 16% to ₹1,30,035 crore.

The COVID-related provisions stood at ₹482 crore. In line with the COVID resolution framework announced by RBI, the bank said it has a standard restructured funds outstanding of ₹379 crore (0.14% of advances). Under the MSME resolution framework, the bank had a standard restructured funds outstanding of ₹697 crore (0.25% of advances) as of June 30, 2022.

As of June 30, the GNPA was 2.24% and the NNPA 0.62%. The cost of credit on advances for Q1FY23 was 16 basis points (annualized) (excluding COVID and restructuring provision/reversal). The provision coverage ratio stood at 72.6%, the bank said.

The bank’s capital adequacy ratio, according to Basel III at June 30, was 22.1% and the CET I ratio was 21.0%.