Kotak Mahindra Bank Q1 results: Net profit surges 67% to Rs 3,452 cr, but asset quality weakens

Kotak Mahindra Bank Q1 results: Net profit surges 67% to Rs 3,452 cr, but asset quality weakens

Its asset quality depleted from Q4 in FY23. Its gross NPA was at Rs 6,587.43 crore in Q1 FY24 as compared to Rs 6,418.67 in Q4 FY23.

Kotak Mahindra Bank Q1 earnings
Basudha Das
  • Jul 22, 2023,
  • Updated Jul 22, 2023, 2:11 PM IST

Kotak Mahindra Bank has reported a 67 per cent rise in its standalone profit at Rs 3,452 crore in Q1 of the current financial year in comparison to Rs 2,071.15 crore in the first quarter of the previous fiscal.

But its asset quality depleted from Q4 in the last fiscal. Its gross NPA was at Rs 6,587.43 crore in Q1 FY24 as compared to Rs 6,418.67 in Q4 FY23. Net NPA surged Rs 1,579.62 crore in the previous quarter as compared to Rs 1,478.64 in the year-ago period.

But its asset quality, when compared year-on-year, has improved in the this quarter, with gross non-performing assets (NPA) declining to 1.75 per cent from 2.27 percent in the year-ago period.

In an exchange filing on Saturday, the net interest income (NII) for the said quarter stood at Rs 6,234 crore, up 33 per cent YoY, largely in line with ET NOW poll estimates of Rs 6,200 crore. Fees and services for Q1FY24 increased to Rs 1,827 crore from Rs 1,528 crore in Q1FY23, up 20% YoY, the company noted.

Its profit after tax has gone up to Rs 4,150 crore as compared to Rs 2,755 crore in the year-ago period. The Return on Assets has also gone up to 2.63 per cent as compared to 2.04 per cent in Q1 FY23.

But the data for quarter on quarter shows that RoA has gone down by 0.65 per cent as compared to 0.76 per cent in Q4 FY23.

The shares of Kotak Mahindra Bank closed at Rs 1967.40 on July 21, 2023, up 0.67 per cent from the previous day's close of Rs 1957.

Other highlights of the earnings report

> Fees and services for Q1FY24 increased to Rs 1,827 crore from Rs 1,528 crore in Q1FY23, up 20 per cent YoY.

> Operating profit for Q1FY24 was Rs 4,950 crore, up 78 per cent YoY. In Q1FY23, it was Rs 2,783 crore.

> The bank had 43.5 million customers as of June 30, 2023, as compared to 34.5 million a year ago.

> The average Term deposit was up 40 per cent from Rs 130,035 crore for Q1FY23 to Rs 182,047 crore for Q1FY24.

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