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Journalism of Courage
Kotak Mahindra Bank on Monday reported a 15 per cent year-on-year (y-o-y) rise in standalone net profit for the quarter ended March 31, 2018 to Rs 1,124 crore on the back of a 19.4 per cent y-o-y growth in net interest income (NII) to Rs 2,579.75 crore. NII is the difference between interest earned and interest paid by a bank.
Net interest margin (NIM) improved 15 basis points (bps) from the end of December to 4.35 per cent. Asset quality saw an improvement, with gross non-performing assets (NPAs) falling nine bps from the end of December to 2.22 per cent of the loan book and net NPAs declining 11 bps sequentially to 0.98 per cent.
Uday Kotak, managing director and chief executive officer, Kotak Mahindra Bank, said trends in the bond market will have a bearing on yields in the quarters ahead. “With picking up of the micro economy, and as long as we drive our growth carefully and conservatively, I would believe going forward we see provisioning cost trending down subject to markets on the bond side …” he said. FE
