Kotak Mahindra Bank reported strong growth in loan advances during the quarter ended September 2021. It recorded 14.70% growth on a year-on year basis in advances during the quarter and 8% sequential growth. The Bank’s loan growth was broad-based across all segments. Its retail loan book recorded strong growth of 20% because of momentum in home loans, unsecured personal loans and credit card loans.
The Net Interest Income (NII) recorded marginal growth of 3.16% YoY, and 2% QoQ because the more significant portion of the loans was disbursed during the later end of the quarter and some slippages were also recovered during that time.
Net profit for the quarter recorded a de-growth of 7% due to subdued growth in NII and higher provision for the quarter. As the bank remains optimistic about the lending environment across the segments, it is expected that the bottom line will improve and grow in the coming months on account of strong customer acquisition and lower slippages.
The asset quality for the bank improved during the September ended quarter 2021. The Gross Non-Performing Assets (GNPA) improved from 3.56% in June ended quarter to 3.19% in September ended quarter. The Net Non-Performing Assets (NNPA) improved further to 1.06% during the September ended quarter. The Restructured loan book (modified terms and conditions in loans for the Covid-19 impacted borrowers) is at 0.54% of the loan book and the same is lower than closest)
On the liability front Current account posted strong growth of 32% YoY basis driven by i) strong performance of the retail engine due to solid growth momentum in the current accounts of the branches ii) robust corporate transaction banking iii) healthy growth momentum in custodial accounts amid buoyant IPO market. As a result, the CASA ratio for the quarter improved further to 60.6% during September ended quarter from 57.1% during September’2020.
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