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.
Decreasing bad loans helped private lender Kotak Mahindra Bank to increase its profits in the third quarter of FY2020-21. The Bank’s standalone net profit rose to Rs 1,854 crore for the third quarter ended December as compared to Rs 1,596 crore in the same period a year ago.
Bank’s total income rose to Rs 8,124.92 crore during the quarter under review. It was reported at Rs 8,077.03 crore in the year-ago period.
“Net Interest Income (NII) for Q3FY21 increased to Rs 4,007 crore, from Rs 3,430 crore in Q3FY20, up 17 per cent. Net Interest Margin (NIM) for Q3FY21 was at 4.51 per cent,” the lender said in a statement.
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On a consolidated basis, the bank’s profit increased by 11 per cent to Rs 2,602 crore as compared to Rs 2,349 crore in the same period a year ago.
Total income during the October-December period rose to Rs 14,835 crore from Rs 13,542 crore in third quarter of 2019-20.
Gross non-performing assets (NPAs) at the quarter-end declined to 2.25 per cent of the total advances as compared with 2.46 per cent at the end of the third quarter of 2019-20. Similarly, NPAs dropped by 0.50 per cent of the assets in October-December 2020, against 0.89 per cent a year ago.
COVID-19 related provisions as on December 31, 2020, stood at Rs 1,279 crore. In accordance with the Resolution Framework for COVID-19 announced by the Reserve Bank of India in August last year, the bank has approved, for certain eligible borrowers, one-time restructuring of 0.28 per cent of net advances, the bank said.
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