Kotak Mahindra Bank Reports Rise in Net Profit

1 Mins read

Kotak Mahindra Bank has seen a boost in its net profit for the third quarter of the fiscal year. The Indian bank announced that its net profit for the quarter ending December 31 has increased by 6.8% to 42.65 billion rupees ($512.9 million) compared to the previous year.

The bank’s revenue also experienced significant growth, rising by 31% to INR240.83 billion. This increase was driven by a 32% expansion in interest earned, as well as a 30% climb in other income.

Furthermore, Kotak Mahindra Bank saw improvements in its asset quality, with the ratio of gross nonperforming assets to gross advances dropping to 1.68% from 1.69% in the previous quarter and 1.91% from a year ago.

However, the bank had to allocate higher provisions and contingencies, amounting to INR6.62 billion compared to INR1.49 billion in the previous year. These provisions included INR1.90 billion for investments in alternate investment funds, following stricter regulations imposed by the Indian central bank.

To support its future growth plans, Kotak Mahindra Bank’s board has approved raising up to INR100 billion through the issuance and private placement of non-convertible debentures by March 2025.

Despite falling short of earnings expectations due to a treasury loss and the provision for investment in AIFs, the bank’s net interest income exceeded estimates. Citigroup has maintained a neutral rating for the bank’s stock with a target price of INR2,040.

Related posts

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…

DaVita Expands in Latin America

1 Mins read
Shares of DaVita reached record levels as the kidney care services company announced its significant expansion into Latin America through a $300…

Leave a Reply

Your email address will not be published. Required fields are marked *

68 + = 73