Private lender Kotak Mahindra Bank on Saturday said its net profit shot up 81% in the first quarter.
What Happened: 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. This beat analyst estimates of ₹3,673 crore. However, the bottom line included an exceptional item of ₹3,519.90 crore.
Leaving aside the one-off item from the divestment of stake in Kotak General Insurance, the company’s profit came in at ₹2,729.92 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 fell short of analyst expectations of ₹7,066 crore.
See Also: Oil India Appoints Saloma Yomdo As New Director Of Exploration & Development
Key Numbers: 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 the 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.
Price Action: Ahead of the earnings report, Kotak Mahindra Bank’s stock dipped 0.81% to close Friday’s session at ₹1,812. The stock has declined 5.1% year-to-date.
Read Next: Reliance’s Net Profit Slips 5% To ₹15,138 Cr, Missing Estimates
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.