Mumbai: Kotak Mahindra Bank on Saturday reported a higher than expected jump in net profit for the June-September quarter, lifted by strong credit growth.
The private lender’s standalone profit jumped 27% to 25.80 billion Indian rupees ($313 million) from the same period last year.
According to data from Refinitiv IBES, analysts were expecting a profit of Rs 23.68 billion.
Net interest income rose 27% to Rs 50.99 billion from a year ago, while other income grew 7.9%.
Gross bad loans as a percentage of total loans – a measure of asset quality – declined to 2.08% at the end of September, from 2.24% at the end of June. Net non-performing assets declined to 0.55% from 0.62% at the end of June.
Strong quarterly results were expected from India’s banks as lending picked up despite a hike in central bank rates.
Kotak Mahindra Bank said in a regulatory filing this week that it will look to raise funds by issuing non-convertible debentures. ,Reuters
($1 = 82.5290 Indian Rupee)
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