On Saturday, India’s Kotak Mahindra Bank (KTKM.NS) announced a better-than-expected 26% increase in net profit for the January-March quarter, aided by increased net interest income and solid loan growth.
In the fourth quarter of the fiscal year, the private lender’s standalone net profit, excluding subsidiaries, grew to 34.96 billion rupees ($427.8 million) from 27.67 billion the previous year.
Refinitiv statistics showed the outcome above experts’ 29.13 billion rupee projection.
Net interest income rose 35% to 61.03 billion rupees from 45.21 billion. Net interest margin rose to 5.75% from 4.78% last year.
The bank’s loans surged 18% year-over-year, while deposits rose 16.4%, led by term deposits.
RBI data shows that Indian banks have maintained double-digit lending growth despite 250 basis point rate rises since May.
Lenders have increased deposits due to tighter liquidity. However, most banks’ deposit growth lags behind lending growth.
HDFC Bank and ICICI Bank recorded a double-digit profit increase for the Jan-March quarter due to credit growth.
Quarterly asset quality improved for Kotak Mahindra. At the end of March, gross non-performing assets (NPA) were 1.78%, down from 1.90% in December, and net NPA was 0.37%, down from 0.43%.
The bank’s board recommended a 1.50 rupee dividend per share.
India’s largest private lender is Kotak Mahindra Bank. The bank had 1,780 branches on March 31.
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