Kotak Mahindra Financial institution Q2 internet revenue falls 7%, asset high quality improves

Personal lender Kotak Mahindra Financial institution on Tuesday reported a 7% fall in its Q2 standalone internet revenue at 2,032 crore as in comparison with 2,184.5 crore within the year-ago quarter. Shares of Kotak Financial institution surged almost 3% at 2217 apiece on the BSE in Tuesday’s offers after the earnings announcement.

The financial institution’s internet curiosity earnings (NII), the distinction between curiosity earned and curiosity expended, rose over 3% to 4,020.6 crore from 3,897 crore in the identical quarter final 12 months. The non-public lender’s provisions and contingencies declined to 424 crore from 703.5 crore quarter-on-quarter (QoQ), although rose from 333 crore YoY.

Kotak Mahindra Financial institution’s gross non-performing property (GNPA) throughout the second quarter stood at 3.19% as in comparison with 3.56% within the June quarter, nonetheless, it was larger than 2.70% within the year-ago quarter. In the meantime, the web NPA improved to 1.06% versus 1.28% on a sequential foundation, and remained flat on the YoY foundation.

The lender’s tax bills for the quarter ended September declined to 664 crore from 744 crore within the corresponding quarter of the earlier fiscal. Then again, its capital adequacy ratio (Basel III) stood at 21.76% from 23.11% QoQ and 22.05% YoY.

“The Financial institution nonetheless, has not skilled any vital disruptions throughout the pandemic and has thought-about the impression on carrying worth of property primarily based on the exterior or inside info accessible as much as the date of approval of the standalone monetary outcomes,” mentioned Kotak Mahindra Financial institution in an change submitting.

The longer term direct and oblique impression of COVID-19 on Financial institution, outcomes of operations, monetary place and money flows stays unsure and can rely upon current in addition to future developments, together with steps to comprise its unfold or mitigate its impression, it added. The financial institution, as at 30 September 2021, continues to carry provisions of 1,279 crore made on account of COVID-19 pandemic.


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