Kotak Mahindra Bank on Tuesday reported a 51 per cent rise in net profit to Rs 1,724.48 crore for the quarter ended September 30. In a regulatory filing, the Mumbai-based private sector bank said its net interest income - or the difference between the interest earned on loans and the interest paid on deposits - rose 25.15 per cent to Rs 3,349.59 crore in the second quarter of current financial year, from Rs 2,676.31 crore in the corresponding period a year ago. Net interest margin (NIM) rose to 4.61 per cent in the July-September period, from 4.19 per cent in the year-ago period.
Bad loans spiked as its gross non-performing assets (NPAs) as a percentage of total advances came in at 2.32 per cent in the July-September period as against 2.19 per cent in the previous quarter.
Net NPAs of the country's third largest private sector lender by market capitalisation rose to 0.85 per cent from 0.73 per cent in the June quarter.
Provisions for bad loans rose to Rs 407.93 crore in the second quarter of 2019-20, from Rs 317.76 crore in the April-June period.
Average savings deposits grew 20 per cent to Rs 80,425 crore. Average current account deposits grew 22 per cent to Rs 33,216 crore.
The bank said it had a network of 1,512 full-fledged branches and 2,429 ATMs as on September 30, 2019, the lender said in a press release.
At 2:21 pm, Kotak Mahindra Bank's share traded 0.09 per cent lower at Rs 1,614 as against a 0.62 per cent decline in the benchmark Sensex index.