RBI bans Kotak Mahindra Bank from on boarding new online customers
However, the RBI (Reserve Bank of India) said the bank shall continue to provide services to its existing customers, including its credit card customers.
The leading private sector lender Kotak Mahindra Bank reported a 6.76% spike in its consolidated net profit for the September-December quarter, reaching Rs 4,265 crore, as compared to Rs 3,995 crore reported during the same period of the previous year.
On a standalone basis, the net profit for the reporting period was up 7.62% to Rs 3,005 crore, attributed to a sharp rise in provisions.
The bank’s net interest income increased by nearly 16% to Rs 6,554 crore, while other income rose by approximately 18% to Rs 2,297 crore. The Net Interest Margin (NIM) for Q3 FY24 was 5.22%.
Advertisement
“Advances (including IBPC & BRDS) increased by 19 per cent year-on-year to Rs 3,72,464 crore as at December 31, 2023, from Rs 3,13,154 crore as at December 31, 2022,” the bank said in a statement.
Bank’s provisions and contingencies surged by 288.6% year-on-year to Rs 579 crore, primarily due to Rs 143 crore (post-tax) towards Alternate Investment Funds, as mandated by the Reserve Bank of India.
As of December 31, 2023, the Gross Non-Performing Assets (GNPA) were 1.73% and the Net Non-Performing Assets (NNPA) were 0.34%, compared to GNPA of 1.90% and NNPA of 0.43% as at December 31, 2022. The provision coverage ratio stood at 80.6%.
Also, for this quarter, the Capital Adequacy Ratio of the bank, as per Basel III, as of December 31, 2023, was 21.2%, and the Common Equity Tier 1 ratio was 20.1%, both including unaudited profits.
Advertisement
