By Kosaku Narioka
Kotak Mahindra Bank, one of India’s leading banks, has announced impressive financial results for the first quarter of the fiscal year. The bank reported a net profit of INR 41.50 billion ($506.1 million), representing a significant increase of 51% compared to the previous year.
The surge in profits can be attributed to the bank’s robust performance in both its retail and corporate-banking businesses. The profit from corporate and wholesale banking witnessed a notable growth of 38%, reaching INR 19.28 billion. Additionally, the profit from retail banking doubled to INR 11.38 billion, up from INR 5.67 billion recorded last year.
The first-quarter revenue also experienced a remarkable surge, rising by 79% to reach INR 207.24 billion.
Moreover, Kotak Mahindra Bank showcased its strong asset quality. Provisions increased to INR 4.14 billion, ensuring the bank’s diligent risk management approach. Additionally, the ratio of gross nonperforming assets to gross advances decreased from 2.27% to 1.75%, reflecting the bank’s commitment to maintaining a healthy asset portfolio.
Customer assets, primarily advances, grew by an impressive 19% to INR 4.058 trillion as of June-end, indicating strong customer confidence and demand for the bank’s services.
The bank’s outstanding performance even surpassed market expectations. On an unconsolidated basis, the net profit stood at INR 34.52 billion, recording a 67% increase, beating the estimate of INR 32.59 billion from a poll of analysts by FactSet.
Kotak Mahindra Bank’s strong financial results demonstrate its resilience and ability to thrive amidst challenging market conditions. It is poised to continue its growth trajectory and maintain its position as a leader in the Indian banking sector.