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New Delhi21 minutes ago
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- Bank’s profit increased due to net interest and other income
- Bank’s gross and net NPA also increased in March quarter
Private sector bank Kotak Mahindra Bank reported a standalone profit of Rs 1682.4 crore in the fourth quarter of FY 2021. There has been a 32.8% growth in profits over the same period a year ago. The bank had a profit of Rs 1266.60 crore in the fourth quarter of the last financial year.
Boost in profit due to increase in net interest income
Net interest income (NII), other income and pre-provision operating profit is boosting the bank’s profits. According to the exchange filing, the bank’s total net interest income for the March 2021 quarter stood at Rs 3,842.81 crore. Net interest income has increased 8% compared to the same period a year ago. However, net interest margin has come down to 4.39% from 4.72% last year.
1179 crore provision
The bank has provisioned Rs 1179.41 crore for the March quarter. Provision has been increased by 12.6% compared to the same period a year ago. The bank made a provision of Rs 1047.47 crore in the March 2020 quarter. Provision grew by 181.8% over the December 2020 quarter. The bank made a provision of Rs 418.58 crore in the previous quarter.
30.9% jump in non-interest income
The bank grew by 30.9% in non-interest income, or other income, in the March 2021 quarter. The bank’s other income during this period has been Rs 1950 crore. Other income in the same period a year ago was Rs 1489.39 crore. While in the December 2020 quarter, there was another income of Rs 1285.20 crore.
Pre-provision operating profit stood at Rs 3407 crore.
Kotak Mahindra Bank’s pre-provision operating profit stood at Rs 3,407.5 crore in the fourth quarter of FY 2021. It has grown by 25% over the same period a year ago. The bank’s pre-provision operating profit stood at Rs 2,725.28 crore in the March 2020 quarter. The bank’s pre-provision operating profit stood at Rs 2,902.89 crore in the December 2020 quarter.
90 paise per share dividend declared
The bank has announced a dividend at the rate of 90 paise per share for the investors for the financial year 2020-21. However, shareholders’ approval is yet to be received at the annual general meeting of the bank for the dividend payment. The bank has not informed the date of the annual general meeting.
Bounce in NPA
The bank’s non-performing assets (NPA) have seen a jump in the March 2021 quarter. According to the exchange filing, the gross NPA of the bank stood at Rs 7,425.51 crore in the March quarter. Gross NPA was Rs 5,026.89 crore in the same period a year ago. Net NPA stood at Rs 2,705.17 crore in the March quarter. Net NPA was Rs 1,557.02 crore in the same period a year ago.
Benefit of resolution plan given to 6506 accounts
As per RBI circular dated August 6, 2020, Kotak Mahindra Bank has given resolution plan to 6,506 accounts in FY 2021. There were 6,482 accounts of personal loans, 8 accounts of corporate persons and 16 accounts of other types. Before giving the benefit of the resolution plan, there was a total outstanding of 121.50 crore rupees on these bank accounts. After the resolution plan, a loan of Rs 12.92 crore has been given to these account holders.
Fall in shares
Kotak Mahindra Bank’s quarterly results have not gone down well with investors. This is the reason why the bank’s shares have plunged after the financial results were released. At 2.40 pm, the bank’s stock fell 1.18% to trade at Rs 1728.15 per unit on the Bombay Stock Exchange. The bank’s stock opened in the morning at Rs 1743 per unit. After the financial results were released, the stock had reached a low of Rs 1685.70 per unit.
