27-Apr-2024Today's Market Indicators


Kotak Mahindra Bank Q2 PAT gallops 27% to Rs 2,184 cr
(14:11, 26 Oct 2020)

Profit before tax (PBT) soared 39.42% to Rs 2,928.90 crore in Q2 September 2020 as against Rs 2,100.63 crore in Q2 September 2019. Tax expense for the quarter spurted 97.90% at Rs 744.42 crore as against Rs 376.15 crore in Q2 September 2019. The Q2 result was declared during market hours today, 19 October 2020.

The bank's gross non-performing assets (NPAs) stood at Rs 5,335.95 crore as on 30 September 2020 as against Rs 5,619.33 crore as on 30 June 2020 and Rs 5,033.55 crore as on 30 September 2019. The ratio of gross NPAs to gross advances stood at 2.55% as on 30 September 2020 as against 2.70% as on 30 June 2020 and 2.32% as on 30 September 2019. The ratio of net NPAs to net advances stood at 0.64% as on 30 September 2020 as against 0.87% as on 30 June 2020 and 0.85% as on 30 September 2019.

Kotak Mahindra Bank has not recognised any NPAs since 31 August 2020, in line with the interim order of Supreme Court. If the said order was not given effect to, the GNPA would have been 2.70% and NNPA at 0.74%. The bank has, however, made provision for such advances.

The bank's provisions and contingencies fell 9.64% to Rs 368.59 crore in Q2 September 2020 over Rs 407.93 crore in Q2 September 2019. Capital adequacy ratio of the bank as per Basel III, as on 30 September 2020 stood at 22% and Tier I ratio was at 21.4%.

Net Interest income (NII) for Q2FY21 increased to Rs 3,913 crore, from Rs 3,350 crore in Q2FY20, up 17%. Net Interest Margin (NIM) for Q2FY21 was at 4.52%. Operating profit for Q2FY21 stood at Rs 3,297 crore, recording a 31% jump Y-o-Y from Rs 2,509 crore in Q2FY20.

CASA ratio as on 30 September 2020 stood at 57.1% compared to 53.6% as on 30 September 2019. Average Savings deposits grew by 32% to Rs 106,442 crore for H1FY21 compared to Rs 80,425 crore for H1FY20. Average current account deposits grew by 10% to Rs 36,610 crore for H1FY21 compared to Rs 33,216 crore for H1FY20.

COVID related provisions as at 30 September 2020 stood at Rs 1,279 crore (0.62% of net advances). Non specific provisions towards advances (including standard and COVID provisions) is at 177% of the NNPA of the bank.

Shares of the bank fell 0.69% to Rs 1,373.55 on BSE. Kotak Mahindra Bank is a full-service commercial bank. The bank offers a wide range of products and services including personal, commercial, and corporate banking services, including deposit accounts, loans, and investments.

As on 30 September 2020, Kotak Mahindra Bank has a national footprint of 1,602 branches, 2,550 ATMs and branches in GIFT City and DIFC (Dubai).

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