INSUBCONTINENT EXCLUSIVE:
Kotak Mahindra Bank on Monday reported an 8.51 per cent decline in net profit to Rs 1,244.45 crore in the quarter ended June 30
the private sector lender had reported a net profit of Rs 1,360.20 crore in the corresponding period a year ago
Shares in Kotak Mahindra Bank - the country's second largest private sector lender by market capitalisation - fell nearly 3 per cent after
the earnings announcement.In a regulatory filing, Kotak Mahindra Bank said its total income stood at Rs 7,685.40 crore in the April-June
period, making a decline of 3.26 per cent compared with the year-ago period. Kotak Mahindra Bank's asset quality worsened.Its gross
non-performing assets (NPAs) - or bad loans - as a percentage of total loans came in at 2.70 per cent in the first quarter of financial year
2020-21, as against 2.25 per cent in the previous quarter, and 2.19 per cent in the quarter ended June 30, 2019.Total provisions for bad
loans jumped more than three-fold to Rs 962.01 crore, according to Kotak Mahindra Bank
Kotak Mahindra Bank said it made COVID-19-related general provisions of Rs 616 crore in the quarter ended June 30.Net NPAs increased to Rs
1,777.10 crore in the April-June period, from Rs 1,557.89 crore in the previous quarter, and Rs 1,524.38 crore in the quarter ended June 30,
2019.However, its net interest income - or the difference between interest earned and interest expended - increased 17.81 per cent to Rs
the bank's operating profit - or profit before taking into account the provisions and contingencies - rose 9.37 per cent to Rs 2,623.71
crore.Its net interest margin - a key measure of profitability - was at 4.4 per cent in the latest quarter, as against 4.49 per cent in the
year-ago period. Asset quality of the country's banks is expected to take a severe hit due to the coronavirus-led economic crisis
The country's central bank has warned the bad loans in the banking system could soar to almost 15 per cent of total loans by March 2021.At
2:58 pm, Kotak Mahindra Bank shares traded 2.07 per cent lower at Rs 1,322 apiece on the BSE, underperforming the benchmark Sensex index
which was down 0.20 per cent amid volatile trade.
