Mumbai: Kotak Mahindra Bank Ltd on Friday reported a 19.7% increase in its fiscal third-quarter profit on higher net interest income (NII) and other income.
Net profit rose to Rs1,053.21 crore for the three months ended 31 December from Rs879.76 crore in the same quarter a year earlier. According to 17 analysts surveyed by , the bank was expected to post a net profit of Rs963.80 crore.
On a consolidated basis, the bank reported a net profit of Rs1,624 crore, up 28% from a year ago.
NII, or the core income a bank earns by giving loans, increased 16.8% to Rs2,393.72 crore compared with Rs2,050.32 crore last year. Other income rose 14.2% to Rs1,039.82 crore from Rs910.22 crore a year ago.
Provisions and contingencies rose 10.76% to Rs212.77 crore from Rs192.10 crore a year ago. On a quarter-on-quarter basis, it fell 1.74% from Rs216.53 crore.
Gross non-performing assets (NPAs) rose 16.9% to Rs3,714.99 crore at the end of the December quarter from Rs3,177.88 crore in the same quarter a year earlier. The bank said restructured loans considered standard stood at Rs67 crore or 0.04% of net advances during the quarter.
As a percentage of total loans, gross NPAs improved to 2.31% as compared to 2.47% in the previous quarter and 2.42% in the year-ago quarter. Net NPAs were at 1.09% in the December quarter compared to 1.26% in the previous quarter and 1.07% in the same quarter a year earlier. The management said the bank has a total exposure of Rs300-400 crore in six accounts from the second list of corporate defaulters referred to the National Company Law Tribunal.
Advances rose 23% from a year ago to Rs1.59 trillion. Deposits gained 21% to Rs1.81 trillion. Personal loans and credit cards grew by 45% each and corporate loans saw a growth of 20%.
IDFC Bank Ltd, on the other hand, reported a 23.6% decline in its fiscal third quarter profit due to a fall in NII, other income and higher other operating expenses.
Net profit fell to Rs146.11 crore for the quarter ended 31 December from Rs191.26 crore a year ago. According to a Bloomberg survey of four analysts, IDFC Bank was expected to post a net profit of Rs178.80 crore.
NII decreased 5% to Rs494.96 crore in the December quarter from Rs520.77 crore in the same period a year earlier. Other income fell 31% to Rs230.79 crore from Rs334.20 crore.
Asset quality improved and provisions fell sharply during the quarter. Gross NPAs fell 22.6% to Rs2,776.67 crore at the end of the December quarter from Rs3,586.70 crore in the same quarter last year.
Shares of Kotak Mahindra Bank rose 0.34% to close at Rs1,049 on BSE, while IDFC Bank’s scrip rose 0.4% to Rs58.60; the exchange’s benchmark Sensex rose 0.25% to 35,348.63 points.livemint