Kotak Mahindra Bank reported a 10% rise in net profit for the third quarter ended December 31, supported by steady growth in interest income and strong performance in loans and deposits, the private lender said on Friday.
Net profit stood at ₹3,305 crore, missing Bloomberg analysts’ estimate of ₹3,338 crore but surpassing the ₹3,005 crore recorded in the same period last year. Net interest income (NII) grew 10% year-on-year to ₹7,196 crore, bolstered by robust lending activity, while the net interest margin (NIM) remained steady at 4.93%.
“Despite facing economic headwinds, we have achieved a 15% growth in advances and 16% growth in deposits,” Managing Director Ashok Vaswani said in a statement. “We have maintained our margins and kept tight control over expenses, while credit costs are beginning to plateau, signaling a positive trend.”
The bank’s gross non-performing asset (NPA) ratio improved to 1.51% from 1.68% a year earlier. However, the net NPA ratio edged up to 0.44% from 0.36% last year. Fresh slippages rose to ₹1,657 crore from ₹1,177 crore in the prior-year quarter, while loan write-offs climbed to ₹662 crore, compared with ₹132 crore a year earlier.
Provisions and contingencies surged 37% year-on-year to ₹794 crore, reflecting heightened risks in select lending segments, the bank noted.
Customer assets grew 15% year-on-year to ₹4.59 lakh crore, up from ₹4 lakh crore, while average total deposits rose 15% to ₹4.59 lakh crore, compared with ₹3.99 lakh crore a year earlier.
Despite the solid performance, the bank flagged challenges in its credit card, microfinance, and personal loan portfolios. Vaswani pointed to “heightened volatility and signs of a potential slowdown in macroeconomic activity” as areas of concern.
A lender said it continues to navigate a challenging environment, leveraging its robust balance sheet and disciplined cost management to maintain growth.
