Kotak Mahindra Bank Q4 results: Net profit jumps 33% to Rs 1,682 crore

Kotak Mahindra Bank on Monday posted a 32.82% year-on-year (YoY) growth in net profit at Rs 1682.37 crore for the quarter ended March 31. It had posted a profit of Rs 1266.60 crore in the corresponding quarter last year.

Net interest income of the lender grew 7.95% YoY to Rs 3,843 crore. Provision and contingencies of the lender spiked to Rs 1,682 crore, up 32.75%, against Rs 1,267 crore in the same period last year. No fresh Covid-related provisions were created by the bank during the quarter under review. However, the figure stood at Rs 1279 crore for the financial year ended March 31, 2021.

“In accordance with the Resolution Framework for Covid-19 and MSME announced by RBI, as of March 31, 2021, the bank has implemented, for certain eligible borrowers, restructuring of Rs 435 crore (0.19% of net advances),” Kotak Mahindra Bank said in a release.

Asset quality of the lender took a hit with the percentage of gross-non performing assets (NPA) stood at 3.25% as of March 31, 2021 against 2.25% for the corresponding quarter last year. Net NPA also increased to 1.21% from 0.71% YoY.

Shares of the bank traded 2.78% down at Rs 1700.05 at around 1.40 pm (IST). On the other hand, the benchmark BSE Sensex was down 328 points, or 0.67%, at 48,454.

The consolidated net profit of the lender witnessed a rise of 16% YoY at Rs 9,990 crore from Rs 8,593 crore in FY20.