[ad_1]
Kotak Mahindra Bank on Thursday reported a 12% increase in net income compared with the first quarter of year-on-year (year-over-year) Kotak Mahindra Bank on Thursday reported a 12% year-over-year (year-over-year) increase in self-sustaining net income for the quarter ended June at Rs. 1,025 crore thanks to an income net of healthy interests (NII) and to improve the quality of badets. NII, or the difference between interest earned and interest expended by a bank, increased by 15% to Rs 2,583 crore for the quarter. The quality of the bank's badets improved during the quarter, gross nonperforming badets as a percentage of total loans falling by 5bp to 2.17% and new APMs decreasing sequentially by 12bp to 0, 86%. However, provisions more than doubled to 470 million rupees as a result of market value losses (MTM).
Net Interest Margin (NIM) – a key indicator of a bank's profitability – decreased by 5 points (bps) qoq to 4.3%. On a consolidated basis (including subsidiaries), the bank recorded 17% growth in net profit to Rs. 1,574 million. Dipak Gupta, co-CEO of Kotak Mahindra Bank, told reporters that the bank was concerned about small and medium-sized enterprises (SMEs) and that provisions for the sector were higher. "This seems to be the first signs of pain for the future.I think we have been swept away by the problems of large and medium-sized businesses and forgotten about SMEs," Gupta said.
The bank, he said, deliberately slowed down its lending to the SME sector. now feels the pain after demonetisation and the introduction of the Goods and Services Tax (GST). The bank has an exposure of about 18,000 crores to the SME sector, just over 10% of its total advances. The bank's special mention account (SMA) 2 – including loans in arrears between 61 and 90 days – rose to Rs 189 crore, or 0.11% of net advances. His total advances increased from 24% y-o-y to Rs 1.76 lakh crore in FY19 Q1; corporate advances increased 21 percent year-on-year to Rs 1.04 lakh crore during the same period and accounted for 59 percent of the total loan portfolio.
The bank's current savings account (CASA) ratio was 50.3% yoy The bank's capital adequacy ratio in accordance with Basel III standards is established at 17.76% in the first quarter of fiscal year 19. Gupta said the bank is on track to reach the goal of doubling its customer base between March 2017 and September 2018, and that its digital product 811 will contribute a great deal. At present, it has more than 14 million customers and will reach the double goal of 16 million by the end of September, Gupta added. Shares of Kotak Mahindra Bank on BSE fell 3.69% on Thursday to close at Rs. 1,350.25.
Source link
