Private sector Kotak Mahindra Bank on Tuesday reported about 7 per cent decline in its net profit to Rs 2,032 crore in second quarter ended September 2021.
The bank had posted net profit of Rs 2,184 crore in the same quarter of the previous fiscal year.
Total income during July-September period of 2021-22, however, grew to Rs 8,408.87 crore, as against Rs 8,252.71 crore in same period of 2020-21, Kotak Mahindra Bank said in a regulatory filing.
Net interest income for Q2FY22 increased to Rs 4,021 crore from Rs 3,897 crore in Q2FY21, up 3 per cent. Net interest margin for the quarter was at 4.45 per cent.
On the asset front, bank's gross non-performing assets (or bad loans) stood at 3.19 per cent by end of September 2021 quarter, up from 2.55 per cent by end of year ago period.
Net NPAs were at 1.06 per cent, up from 0.64 per cent
The bank's provisions for bad loans and contingencies for September quarter were increased to Rs 423.99 crore from Rs 333.22 crore parked aside in year ago quarter.
On a consolidated basis, the bank reported marginal rise in its net profit at Rs 2,989 crore in Q2FY22, from Rs 2,947 crore in same quarter of previous fiscal. Total income rose to Rs 15,341.65 crore for the quarter from Rs 13,548.33 crore.
“For Q2FY22, the bank's contribution to the consolidated PAT (profit after tax or net profit) was Rs 2,032 crore. The subsidiaries and associates net contribution was 32 per cent of the consolidated PAT," the bank said in a release.
Stock of Kotak Mahindra Bank traded at Rs 2,220.40 apiece on BSE, up 2.93 per cent from previous close.
Check what brokerage houses are saying, as per The Economic Times.
Prabhudas Lilladher
The brokerage house said Kotak Bank is likely to be worst impacted from the private bank lot, given conservative approach in lending and high slippages than usual, similar to the last two quarters.
Nomura India
The firm expects a muted loan growth of 7.2 per cent YoY. We factor in margin contraction of 18 bps sequentially, leading to NII growth of 0.2 per cent YoY. We expect a 2.8 per cent YoY decline in PPoP. We factor in slippages of Rs 1,000 crore compared with Rs 1,500 crore in the June quarter.
The firm sees profit falling 3.2 per cent YoY at Rs 2,184.50 crore.
Motilal Oswal
The gross NPA as a percentage of gross advances may come in at 3.5 per cent compared with 3.6 per cent in June quarter and 2.6 per cent in the year-ago quarter. It sees profit falling 16.9 per cent to Rs 1,815 crore.
(With PTI Inputs)
