Kotak Mahindra Bank Q4 Results: Profit Up 64.5% On Provision Write-Back

Kotak Mahindra Bank Ltd. saw its profit rise in the fourth quarter on a provision write-back.

The private lender's net profit increased 64.5% over the year earlier to Rs 2,767 crore in the January-March period, according to its exchange filing. That compares with the Rs 2,147-crore consensus estimate of analysts tracked by Bloomberg.

Net interest income, or the core income, for the bank rose 18% year-on-year to Rs 4,521 crore. Its other income was up 21.5% at Rs 1,827 crore.

The lender's asset quality improved during the quarter.

Gross non-performing asset ratio dropped 37 basis points quarter-on-quarter at 2.34% as of March. Net NPA ratio fell to 0.64%, down 15 basis points sequentially.

Slippages during the quarter stood at Rs 736 crore, while recoveries and upgrades were at Rs 897 crore.

During the fourth quarter, the bank reported a provision write-back worth Rs 306 crore compared with provisions worth Rs 734 crore made a year earlier. Provision coverage ratio stood at 73.2%, compared with 63.6% a year ago.

Business Growth

Kotak Mahindra Bank's customer assets stood at Rs 2.92 lakh crore, up 22.45% year-on-year, as of March 2022. Customer assets include advances and credit substitutes. Total advances rose 21% year-on-year to Rs 2.71 lakh crore.

Home loans stood at Rs 76,077 crore at the end of the fourth quarter, up 39% year-on-year. Corporate banking stood at Rs 66,212 crore, up 6%. These two segments constituted 49% of the bank's overall loan book.

Total deposits were up 11.3% from a year ago at Rs 3.12 lakh crore. Low-cost current account, savings account deposits constituted 60.7% of its total deposits, compared with 60.4% a year ago.

Shares of Kotak Mahindra Bank were trading at Rs 1,814 apiece, up 2.3% from Monday's close, as of 1:30 p.m.