Kotak Mahindra Bank garners 31% rise in Q3 PAT to ₹2,972 cr, provisions scale up

However, Q3 PAT scaled up by 8.17% from the profit of ₹2,581 crore that was recorded in the September 2022 quarter.

Net interest income (NII) which is the difference between interest earned and interest expended, came in at ₹5,653 crore in Q3 of FY23. The latest quarter’s NII climbed by 30.43% from ₹4,334 crore in Q3FY22 and was up by 10.86% from ₹5,099 crore in Q2FY23.

Net interest margin (NIM) expanded to 5.47% in Q3FY23 from 4.62% in the year-ago same period.

Noteworthily, the bank witnessed an upside in its provisions and contingencies which came in at ₹148.83 crore in Q3FY23 compared to a provisions loss of ₹131 .74 crore in Q3FY22. Also, it was up from provisions of ₹137 crore in Q2FY23.

On the contrary, asset quality continued to improve significantly with gross non-performing assets (NPA) coming under 2% in the current quarter.

In Q3FY23, in percentage terms, Kotak posted a gross NPA that stood at 1.90% — contracting by 81 bps from 2.71% in Q3FY22 and down by 18 bps from 2.08% in Q2FY23.

Also, net NPA dipped steeply to 0.43% in Q3FY23 versus 0.79% in Q3FY22 and 0.55% in Q2FY23.

In value terms as well the asset quality bettered in Q3FY23. The gross NPA stood at ₹5,994.57 crore as of December 31, 2022, compared to ₹6,982.80 crore and ₹6,210.23 crore in Q3FY22 and Q2FY23.

Kotak’s total advances climbed by 23% YoY and 6% QoQ to ₹310,734 crore as of December 31, 2022. Under the advances, the bank posted 29% YoY growth in home loans & loans against property to the tune of ₹89,112 crore, while credit cards came in at ₹9,159 crore rising by a whopping 85% YoY. Loans for PL, BL, and Consumer Durables climbed by 69% YoY to ₹14,542 crore. On the other hand, SME loans picked up by 25% YoY to ₹23,154 crore among others.

Meanwhile, total deposits were at ₹344,666 crore up by 12.89% YoY and 5.98% QoQ. Customers’ assets came in at ₹339,313 crore versus ₹274,569 crore in Q3FY23. CASA ratio stood at 53.3% versus 59.9% in Q3FY22.