The numbers for the current quarter are not comparable to last year as the bank merged ING Vysya Bank with itself in April 2015 but started reporting results including ING Vysya only in subsequent quarters.
A Bloomberg poll of 4 analysts had forecast a net profit ofRs.1,087.70 crore on a consolidated basis.
Net interest income (NII), the core income a bank earns from its lending business, grew 18.59% to Rs.2,565.73 crore from Rs.2,163.49 crore a year ago. Other income rose 20.17% toRs.1,079.39 crore from Rs.898.20 crore a year ago.
On a stand-alone basis, the bank reported a net profit ofRs.741.97 crore compared to Rs.189.78 crore a year ago. NII rose 20.08% from a year ago to Rs.1,919.10 crore.
In December, the Reserve Bank of India (RBI) conducted an asset quality review across the banking sector, following which banks were asked to recognize visibly stressed assets as non-performing assets (NPAs) and provide for them. A number of banks have seen this impact their profitability.
In the case of Kotak Mahindra Bank, gross NPAs rose 8.24% to Rs.3,265.18 crore at the end of the June quarter fromRs.3,016.55 crore in the March quarter. On a year-on-year basis gross NPAs jumped 25.81% . Provisions and contingencies rose marginally by 0.75% to Rs.213.57 crore in the quarter from Rs.211.98 crore in March.
As a percentage of total loans, gross NPAs stood at 2.2% at the end of the June quarter as compared to 2.06% in the previous quarter and 2.04% in the year-ago quarter. Net NPAs were at 1.06% in the June quarter compared to 0.93% in the previous quarter and 0.93% in the same quarter last year.
Total deposits rose 20% from a year ago to Rs.1.4 trillion while advances rose 17% to Rs.1.21 trillion. The bank said it has not sold any loans to asset reconstruction companies.
At 3.05pm, the bank was trading at Rs.761.15 on BSE, down 2.67% from its previous close while India’s benchmark Sensex index fell 0.76% to 27,703.31 points.