Kotak Mahindra Bank Q1 result: Net profit jumps 32% YoY to Rs 1,641 crore

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Kotak Mahindra Bank on Monday reported 31.99% year-on-year (YoY) growth in net profit at Rs 1,641.92 crore for the quarter ended June 30. It had posted a profit of Rs 1,244.45 crore in the same period last year. Net interest income of the lender increased 5.85% YoY to Rs 3,942 crore.

Provision and contingencies declined to Rs 935 crore in Q1FY22 over Rs 962 crore in Q1FY21. The company announced its results during market hours. Shares of the company settled 1% higher at Rs 1740, while the benchmark BSE Sensex settled 0.23% lower at 52,852.

Kotak Mahindra Bank further added that the Covid-19 provision continued to be held at Rs 1,279 crore on June 30, 2021. Asset quality of the lender deteriorated during the quarter with the percentage of gross non-performing assets to gross advances moved higher to 3.56% from 2.70% YoY. The percentage of net NPA to net advanced also moved higher to 1.28% from 0.87%.

Employee cost of the company increased by 18.82% YoY to Rs 1,082.30 crore during the quarter under review. The figure stood at Rs 910.88 crore in the same quarter last year. The operating profit for Q1FY22 was Rs 3,121 crore, up 19% from Rs 2,624 crore in Q1FY21. CASA ratio as of June 30, 2021, stood at 60.2% compared to 56.7 % as of June 30, 2020.

Average current account deposits grew by 28% to Rs 46,341 crore for Q1FY22 compared to Rs 36,066 crore for Q1FY21. Average savings deposits grew by 10% to Rs 1,16,218 crore for Q1FY22 compared to Rs 1,05,673 crore for Q1FY21.

Capital adequacy ratio of the bank as per Basel III as of June 30, 2021 was 23.1% and the Tier I ratio was 22.2%.