Kotak Mahindra Bank Q1 Results: Kotak Mahindra Bank said on Saturday reported an 81 per cent surge in its standalone net profit to Rs 6,250 crore for the April-June 2024 quarter. The jump in profit has been recorded on the back of a one-time gain from the divestment of a stake in its general insurance arm.
Kotak Mahindra Bank’s standalone net profit, excluding subsidiaries, had stood at Rs 3,452 crore rupees in the corresponding period last year.
Kotak recorded “exceptional” income of Rs 3,520 crore during the June 2024 quarter after completing the divestment of a 70 per cent stake in its subsidiary, Kotak Mahindra General Insurance Company, to Zurich Insurance Company in June, according to a regulatory filing.
Kotak’s net interest income, the difference between interest earned and paid out, increased 10 per cent on-year to 68.42 billion rupees.
Its net interest margin (NIM), a key gauge of profitability for banks, shrank to 5.02% in the quarter from 5.57% in the same period last year, and was also lower than the 5.28% of the January-March quarter.
Indian banks have consistently seen healthy demand for loans as economic growth has been strong and urban consumption demand is high. Banks are trying to raise deposits to fund the credit growth, which has weighed on their margins.
The private lender’s loans rose 20% in the quarter, while deposits were up 21%.
Kotak Mahindra Bank’s gross non-performing assets (NPA) ratio, a key gauge of lenders’ asset quality, was at 1.39% at the end of June, flat to the prior three months.
(With Inputs from Agencies)
