Kotak Mahindra Bank net profit drops by 8.5 per cent YoY to Rs 1,244.45 crore in Q1FY21

Kotak Mahindra Bank announced its quarterly results on July 27, 2020. Profit after tax (PAT) declined by 8.5 per cent YoY to Rs 1,244.45 crore for the quarter ending June 2020, as compared to Rs 1,360.2 crore in Q1FY20.

Standalone total income stood at Rs 7,685.4 crore in Q1FY21, which declined by 3.3 per cent YoY, as compared to Rs 7,944.61 crore reported in previous year. Net interest income (NII) came in at Rs 3,723.85 crore, which increased by 17.8 per cent YoY, as against Rs 3,160.89 crore in Q1FY20. Operating profit for Q1FY21 stood at Rs 2,623.71 crore, which increased by 9.4 per cent YoY, as against Rs 2,398.92 crore in Q1FY20.

Provisions and contingencies increased by 203.7 per cent YoY to Rs 962.01 crore in Q1FY21, as against Rs 316.76 crore in Q1FY20. The bank has made an additional COVID 19 related general provision of Rs 616 crore in Q1FY21. COVID related provisions as at June 30, 2020 stand at Rs 1,266 crore, which is 0.62per cent of net advances.

Capital adequacy ratio stood at 21.23 per cent in Q1FY21 that increased by 3.34 per cent QoQ, as against 17.89 per cent in previous quarter.

On the asset quality front, gross non-performing assets (NPA) in Q1FY21 stood at Rs 5,619.33 crore witnessing a sequential growth of 11.8 per cent QoQ. Net NPA in Q1FY21 came in at Rs 1,777.1 crore witnessing a growth of 14.1 per cent QoQ. Gross NPA as per cent to gross advances stood at 2.7 per cent in Q1FY21, which witnessed a growth of 45 bps QoQ, as against 2.25 per cent in previous quarter. Net NPA as percent to net advances stood at 0.9 per cent in Q1FY21, which increased by 16 bps QoQ, compared to 0.71 per cent in Q4FY20.

The share closed at Rs 1,322.45 with a decline of 2.03 per cent on BSE.