Kotak Mahindra Bank increases customer base, customer assets by 20% YoY - World News Network

New Delhi [India], July 20 (ANI): Kotak Mahindra Bank has reported a significant growth in its financial performance for the first quarter of FY25, with the Profit After Tax (PAT) reaching Rs 6,250 crore, an 81 per cent increase from Rs 3,452 crore in first quarter of FY24.
The profit of Kotak bank surged because of the selling of stake in Kotak General Insurance to Zurich Insurance group.
Excluding the gains (net of tax) of Rs 2,730 crore from the divestment of its stake in Kotak General Insurance, the bank’s PAT stood at Rs 3,520 crore for the quarter.
The Net Interest Income (NII) for the first quarter in the current financial year rose to Rs 6,842 crore, marking a 10 per cent year-on-year increase from Rs 6,234 crore in the same period last year.
Net Interest Margin (NIM) for the quarter was recorded at 5.02 per cent. Fees and services income for quarter increased by 23 per cent YoY to Rs 2,240 crore, up from Rs 1,827 crore in Q1FY24.
The operating profit of the bank for the first quarter also saw an uptick, reaching Rs 5,254 crore, a 6 per cent increase from Rs 4,950 crore in the previous year. The bank’s customer base also grew to 5.1 crore as of June 30, 2024, compared to 4.3 crore a year earlier.
The bank also reported that the customer Assets, which include advances and credit substitutes, also grew by 20 per cent YoY to Rs 435,827 crore from Rs 362,204 crore.
The percentage of unsecured retail advances, including retail microcredit, stood at 11.6 per cent of net advances as of June 30, 2024.
The average total deposits of the bank for the quarter grew by 21 per cent YoY to Rs 435,603 crore, compared to Rs 361,295 crore during the corresponding period.
The bank also stated that the average current deposits increased by 5 per cent YoY to Rs 62,200 crore, and average savings deposits grew by 2 per cent YoY to Rs 122,105 crore for the same period.
The bank’s asset quality improved, with the Gross Non-Performing Assets (GNPA) ratio at 1.39 per cent and the Net Non-Performing Assets (NNPA) ratio at 0.35 per cent as of June 30, 2024, compared to 1.77 per cent and 0.40 per cent respectively, a year earlier.
Overall, Kotak Mahindra Bank has demonstrated robust financial health and growth, driven by increased income from interest and services, as well as a notable rise in customer assets and deposits. (ANI)

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