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News Topical, Digital Desk : Kotak Mahindra Bank has presented its first quarter results. The bank's profit has seen a decline of about 48 percent compared to last year. This too was slightly below the estimate. Limited pressure was seen in asset quality on a quarter-on-quarter basis. The bank's provisions have increased compared to both last year and the previous quarter, which has affected the profit.
How were the quarterly results?
The bank's standalone profit in the first quarter was Rs 3,281.7 crore. Which was about 5% less than the estimate of Rs 3,442 crore received in the CNBC-TV18 poll. On an annual basis, it has seen a decline of 47.5%. In the same quarter last year, the profit was Rs 6,250 crore. Pressure in profit has been recorded due to increased provisions. Provisions in the quarter were Rs 1208 crore, which was less than half of this a year ago i.e. Rs 578.5 crore. In the previous quarter, the provision was Rs 909 crore. At the same time, net interest income has increased by 6.1% from Rs 6,842 crore to Rs 7,259.3 crore. Despite the increase, however, it was also slightly less than the estimate of Rs 7,293 crore given in the poll. During the June quarter, the net interest margin was at 4.65%, which was 4.97% in the March quarter. This was also below the estimate. The market had estimated a margin of 4.8%.
How was the asset quality? Slight pressure has been seen in the asset quality of the bank. The bank's gross NPA increased to 1.48% on a quarter-on-quarter basis from 1.42% in the previous quarter, while net NPA also increased from 0.31% to 0.34%. Gross NPA has increased from Rs 6,134 crore to Rs 6,637.7 crore in value terms and net NPA has increased from Rs 1,343.4 crore to Rs 1,531 crore.
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