Kotak Bank Q3 net profit rises on strong NII

Kotak Bank Q3 net profit rises on strong NII

Shares of Kotak Mahindra Bank gained more than 1% to Rs 1823.05 apiece
after India’s third largest private sector lender by market capitalisation clocked a 16.1% year-on-year growth in profit at Rs 1,853.5 crore for the quarter ended December 2020, supported by net interest income (NII) growth and operating profit. In the year-ago quarter, the bank’s profit was Rs 1,596 crore.
NII, which the difference between interest earned and interest paid, grew by 16.8% to Rs 4,007 crore in Q3FY21, compared with Rs 3,430 crore in year-ago quarter.

Gross non-performing assets (NPA) as a percentage of gross advances declined 29 bps sequentially to 2.26% and net NPA fell 14 bps to 0.50% for the quarter ended December 2020.
Ignoring the Supreme Court freeze on declaring bad loans, net non-performing assets of the lender rose to 1.24% from 0.74 per cent in the previous quarter. Gross NPA was pegged at 3.27% against 2.70%. The bank has, however, made provision for such advances including towards interest accrued, but not collected for the entire period with moratorium.

Average savings deposits grew by 29% to Rs 1,07,363 crore for the first nine months for this fiscal compared to Rs 83,049 crore in the same period last year. Average current account deposits grew by 13% to Rs 37,533 crore compared to Rs 33,258 crore.
Advances as on December 31, 2020 were at Rs 2,14,103 crore against Rs 2,04,845 crore as on September 30, 2020 and Rs 2,16,774 crore as on December 31, 2019. Customer assets, which includes advances and credit substitutes, were Rs 2,28,809 crore, marginally more than last year.

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