Kotak Mahindra Bank released its third quarter earnings report on Saturday, which showed that the private lender’s profitability rose during the October-December period, while its asset quality improved despite increase in provisions and contingencies.

Following the release of Q3 numbers, shares of Kotak Mahindra Bank rose as much as 3.6% to ₹1,829.50 crore on the BSE, while the market capitalisation (m-cap) increased to ₹3.6 lakh crore. Stock exchanges are open today for a special live session as the Maharashtra government declared a public holiday on January 22, owing to the consecration of the Ram Mandir in Ayodhya. 

Kotak Mahindra Bank, the country’s fourth largest private lender in terms of m-cap, has posted a 6.75% year-on-year (YoY) increase in its consolidated net profit at ₹4,264.78 crore as compared to ₹3,995.05 crore in Q3 FY23. On a standalone basis, the profit stood at ₹3,005 crore, up 7.6% from ₹2,792 crore in the same period last year.

The consolidated total income stood at ₹24,083.15 crore, growing by 31% from ₹18,371.64 crore in the third quarter of the previous financial year, Kotak Mahindra Bank says in an exchange filing today.

The net interest income of the bank stood at ₹14,494.96 crore as against ₹11,011.29 crore in the corresponding period of the previous fiscal, rising 31% on a YoY basis.

In the first nine months of the current financial year, Kotak Mahindra Bank's consolidated profit increased to ₹12,876 crore from ₹ 10,359 crore in the same period last year, up 24% YoY. The total income rose to 66,366.58 crore as against 47,375.52 crore in 9M FY23. The net interest income stood at ₹41,080.45 crore, up 36 % over ₹30,169.43 crore reported in the first nine months of the previous financial year.

On a standalone basis, the bank’s PAT increased to ₹9,648 crore in 9M FY24, up 30% YoY from ₹7,444 crore in the same period last year. The net interest income (NII) for 9MFY24 rose 24% YoY to ₹19,084 crore, while fees and services for 9MFY24 increased 23% YoY to ₹5,998 crore.

On the asset quality front, the gross non-performing assets (NPAs) stood at 1.68%, down from 1.91% in the year-ago quarter, while the net NPA dropped to 0.36% against 0.48% in Q3 FY23. The provisions and contingencies increased to ₹662 crore from ₹148.72 crore in Q3 FY23 and ₹454.64 crore in Q2 FY24. "The bank made a ₹143 crore provision (post tax) on applicable alternate investment fund (AIF) investments pursuant to RBI’s circular dated December 19, 2023," it said in the release.

Total advances rose 19% YoY to ₹3.72 lakh crore from ₹3.13 lakh crore last year, while average current deposits grew 5% to ₹59,337 crore compared to ₹56,372 crore last year. The current account and savings account (CASA) ratio of the bank stood at 47.7% at the end of the December quarter of FY24.

As of December 31, 2023, customers of the bank stood at 4.8 crore versus 3.9 crore as of December 31, 2022.

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