In Q2, Kotak Mahindra Bank reports a 24% increase in net profit to ₹3,191 crore

• In the same quarter of the previous fiscal year, the bank had reported a net profit of ₹2,581 crore.
• The net interest income increased 23 per cent to ₹6,297 crore from ₹5,099 crore a year ago.
• On the assets quality front, the bank also witnessed an improvement.

Kotak Mahindra Bank's standalone net profit for the quarter ending on September 30 showed an impressive 24% increase, totaling ₹3,191 crore. This substantial growth is primarily attributed to improved core income and a decrease in non-performing loans.

In the same quarter of the previous fiscal year, the bank had reported a net profit of ₹2,581 crore. Kotak Mahindra Bank also reported a significant uptick in its total income, reaching ₹13,507 crore for the July-September period, compared to ₹9,925 crore in the corresponding quarter of the previous year, as disclosed in a regulatory filing.

The net interest income increased 23 per cent to ₹6,297 crore from ₹5,099 crore a year ago.

Its net interest margin for the quarter rose to 5.22 per cent against 5.17 per cent in the corresponding period of the previous financial year.

On the assets quality front, the bank also witnessed an improvement, with gross non-performing assets (or bad loans) declining to 1.72 per cent of gross advances at the end of September 2023 compared to 2.08 per cent a year ago.

Similarly, the net NPAs dropped to 0.37 per cent from 0.55 per cent in the same quarter a year ago.

The bank's capital adequacy ratio stood at 21.7 per cent as of September 30, 2023.

On a consolidated basis, the bank reported a 24 per cent rise in its net profit to ₹4,461 crore in the September quarter compared to ₹3,608 crore in the same period of the previous fiscal.

Its total income on a consolidated basis increased to ₹21,560 crore against ₹17,435 crore in the year-ago quarter.