India’s Kotak Mahindra Bank Q1 Profit After Tax Up By 32 Percent At $220 Million
NEW DELHI — Indian private sector lender Kotak Mahindra Bank, on July 26, reported a 32 percent jump in its Profit After Tax for its first quarter ended June 30 to INR 1,642 crore ($220.4 million). The Profit After Tax was INR 1,244 crore ($167 million) in the first quarter of last year.
Kotak’s Net interest income rose 6 percent to INR 3,942 crore ($529.2 million) in Q1 FY22 from INR 3,724 crore ($500 million) in Q1 FY21. The net interest margin for Q1 FY22 was at 4.6 percent.
“In addition to the widespread public health implications, the Covid-19 pandemic has had an extraordinary impact on macroeconomic conditions in India and around the world,” the bank said in a press release.
“The pandemic has impacted lending business, distribution of third party products, fee income from services or usage of debit/ credit cards, collection efficiency, etc., and has resulted in an increase in customer defaults and consequently increase in provisions. The bank, however, has not experienced any significant disruptions in the past one year and has considered the impact on carrying value of assets based on the external or internal information available up to the date of approval of standalone financial results.”
The operating profit of Kotak for Q1 FY22 was INR 3,121 crore ($419 million), up 19 percent from INR 2,624 crore ($352.3 million), while the current and savings account ratio (CASA) ratio as of June 30 stood at 60.2 percent compared to 56.7 percent last year.
“The bank and its subsidiaries continue to closely monitor the situation, and in response to this health crisis has implemented protocols and processes to execute its business continuity plans and help protect its employees and support its clients,” the press release said.
The average term deposit sweep grew by 24 percent to INR 22,208 crore ($2.98 billion) compared to INR 17,846 crore ($2.34 billion) for Q1 FY21.
The current and savings account ratio and term deposits below INR 5 crore ($671,253) as of June 30 constituted 92 percent of total deposits (90 percent as of June 30 last year).
Covid-19 related provisions as of June 30 were maintained at INR 1,279 crore ($171.7 million). In accordance with the Resolution Framework for Covid-19 and Micro, Small, and Medium Enterprises announced by the Reserve Bank of India, Kotak Mahindra Bank said it has implemented a total restructuring of INR 552 crore ($74 million) so far.
As of June 30, gross non-performing assets were 3.56 percent, and net non-performing assets were 1.28 percent. The credit cost on advances was 133 basis points (annualized) for Q1 FY22.
The capital adequacy ratio of the bank as per Basel III was 23.1 percent, and the tier I ratio was 22.2 percent.
(With inputs from ANI)
Edited by Abinaya Vijayaraghavan and Praveen Pramod Tewari