Kotak Mahindra Bank Q1 profit dips 10 pc to Rs 1,244 cr

Source :ANI
Author :ANI
Last Updated: Mon, Jul 27th, 2020, 15:50:50hrs
The bank has a network of 1,600 branches and 2,516 ATMs.

Mumbai (Maharashtra) [India], July 27 (ANI): Private sector lender Kotak Mahindra Bank on Monday reported 10 per cent fall in its standalone profit after tax at Rs 1,244 crore in the April to June quarter.

In Q1 FY20, it had a net profit of Rs 1,360 crore. The bank said it made an additional COVID-19 related general provision of Rs 616 crore in Q1 FY21.
COVID-related provisions as on June 30 stood at Rs 1,266 crore or 0.62 per cent of net advances. Total provisioning towards advances (including specific, standard and COVID provisions) was higher than the gross non-performing assets (GNPAs).
On June 30, GNPAs stood at Rs 5,619 crore as compared to Rs 4,614 crore last year. In percentile terms, GNPAs were 2.7 per cent to gross advances and net NPAs were 0.87 per cent to net advances.
However, the net interest income for Q1 FY21 increased by 17.8 per cent to Rs 3,724 crore from Rs 3,161 crore in Q1 FY20. The net interest margin (NIM) was at 4.4 per cent.
The average savings deposits crossed Rs 1 lakh crore, growing by 34 per cent to Rs 1.05 lakh crore for Q1 FY21 compared to Rs 78,654 crore for Q1 FY20. The average current account deposits grew by 10 per cent to Rs 36,066 crore compared to Rs 32,679 crore for Q1 FY20.
The bank's capital adequacy ratio as per Basel III norms is 21.2 per cent and tier I ratio is 20.6 per cent. During the quarter, the bank raised Rs 7,442 crore through a qualified institutional placement (QIP) issuance of 6.5 crore equity shares.
"The continued slowdown in economic activities has impacted lending business, fee income generation from the sale of third party products or usage of debit and credit cards besides collection efficiency," said Kotak Mahindra Bank.
This slowdown may impact customer defaults and consequently increase in provisions at the group level. There is a high level of uncertainty regarding the time required for life and business to get normal, it added.
The extent to which COVID-19 pandemic will impact the bank's operations and financial results are dependent on the future developments which are highly uncertain, said the lender. (ANI)