Kotak Mahindra Bank Q2 PAT declines 7% YoY to Rs 2,032 cr
Kotak Mahindra Bank reported a Net Interest Margin (NIM) for Q2FY22 was at 4.45% as compared to 4.6% in Q1 FY22
The private sector bank reported a 7% fall in standalone net profit to Rs 2,032 crore on a 2% rise in total income to Rs 8408.87 crore in Q2 FY22 over Q2 FY21. Net Interest Income (NII) rose 2% quarter on quarter and 3% year on year to Rs 4,021 crore in Q2 FY22. Net Interest Margin (NIM) for Q2FY22 was at 4.45% as compared to 4.6% in Q1 FY22. Capital adequacy ratio of the bank as per Basel III as of 30 September 2021 was 21.8% and Tier I ratio was 20.8%.
The bank’s operating profit before provisions and contingencies jumped fell 4.35% to Rs 3,120 crore in Q2 FY22 from Rs 3,262.12 crore posted in Q2 FY21. Profit before tax declined 7.95% to Rs 2,696 crore in Q1 FY22 from Rs 2,929 crore in Q2 FY21.
Provisions & Contingencies spiked 27.3% year on year to Rs 424 crore in Q2 FY22. The bank said COVID related provisions as of 30 September 2021 were maintained at Rs 1,279 crore. In accordance with the resolution framework for Covid-19 related stress of individuals and small businesses, announced by RBI, the bank said it implemented total restructuring of Rs 495 crore (0.21% of advances) as of 30 September 2021. In addition, in accordance with the Resolution Framework for COVID-19 related stress of MSMEs, announced by RBI, the bank implemented total restructuring of Rs 767 crore (0.33% of advances) as of 30 September 2021. The bank’s provision coverage ratio stood at 67% as on 30 September 2021.
On the asset quality front, the bank’s gross non-performing assets (NPAs) stood at Rs 7,657.96 crore as on 30 September 2021 as against Rs 7,932 crore as on 30 June 2021 and Rs 5,632 crore as on 30 September 2020. The ratio of gross NPAs stood at 3.19% as on 30 September 2021 as against 3.56% as on 30 June 2021 and 2.7% as on 30 September 2020. The ratio of net NPAs stood at 1.06% as on 30 September 2021 as against 1.28% as on 30 June 2021 and 0.74% as on 30 September 2020.
Current Account deposits grew by 32% to Rs 53,280 crore as of 30 September 2021 from Rs 40,454 crore posted on 30 September 2020. Savings deposits grew by 13% to Rs 123,479 crore as at 30 September 2021 from Rs 108,990 crore as at 30 September 2020. TD Sweep grew by 20% to Rs 24,151 crore as at 30 September 2021 from Rs 20,184 crore as at 30 September 2020. CASA ratio was at 60.6% as of 30 September 2021 compared to 57.1% on 30 September 2020.
Advances increased by 15% to Rs 234,965 crore as of 30 September 2021 from Rs 204,845 crore as at 30 September 2020 (Rs 217,465 crore as at 30 June 2021).
Kotak Mahindra Bank is a full-service commercial bank. As on 30 September 2021, Kotak Mahindra Bank has a national footprint of 1,622 branches and 2,601 ATMs.
Shares of Kotak Mahindra Bank were trading 2.15% higher at Rs 2,203.50. The scrip hit a record high of Rs 2,235.50 in intraday today.