Kotak Mahindra Bank reported a net profit of ?6,249.82 crore for the quarter ended June 30, compared with ?3,452 crore earned in the corresponding quarter last year, seemingly beating analyst estimates. However, the bottom line included an exceptional item of ?3,519.90 crore.
Leaving aside the one-off item from the divestment of a stake in Kotak General Insurance, the company’s profit came in at ?2,729.92 crore, which would be below street expectations of ?3,673 crore.
The bank's net interest income (NII) climbed to ?6,842.35 crore from the ?6,234 crore it logged a year ago, marking a year-on-year increase of 9.8%. The figure also fell short of analyst expectations of ?7,066 crore.
Kotak Mahindra Bank’s net interest margin (NIM), which represents the spread between the interest earned on loans and the interest paid on deposits, stood at 5.02%, lower than the analyst forecast of 5.2%.
The key measure saw a contraction from 5.6% in the same quarter last year likely due to higher funding costs.
The bank’s total deposits went up 21% to ?4.36 lakh crore in the quarter, while advances grew 20% to ?4.06 lakh crore. Net advances jumped 19% to ?3.9 lakh crore.
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