Kotak Mahindra Bank reported a decline of 8.5% in its net profit of Rs1,244 crore for the April-June quarter of FY21, as compared to Rs 1,360 crore in the same period a year ago.
The Bank had witnessed a fall of 41% in its other income at Rs 773.5 crore in the quarter ended on June 30, 2020, against Rs 1,317 crore in June 2019. Although it saw a rise in Non-Performing Assets (NPAs) on both fronts of sequential basis and annual basis. Gross NPAs ratio increased to 2.7% from 2.19% a year-ago period and, 2.25% in the previous quarter. Net NPAs percentage increased to 0.87% from 0.71% in the March quarter and 0.73% a year-ago period.
The Net Interest Income (NII) of the bank is increased by 17.81% to Rs 3,723.85 crore. The additional general provision made by the bank during Covid-19 pandemic in the Q1 FY21 was Rs 616 crore. The provision of Coronavirus-related as of 30 June 2020 stands at Rs 1,266 crore (0.62% of net advances).
The lender in its regulatory filing mentioned that due to the continued slowdown in the economic activities the lending business has been impacted, which has also impacted customer’s defaults and consequently increase In provisions at the group levels and had affected the repaying abilities of the customer. The Bank’s operations and financial results are dependent on future developments, which are highly uncertain as coronavirus condition is in concern.
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