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Kotak Mahindra Bank share gains 2% post Q4 earnings

Net Interest Income (NII) rose 8 per cent to Rs 3,843 crore in the March quarter compared to Rs 3,560 crore in Q4FY20

Net Interest Income (NII) rose 8 per cent to Rs 3,843 crore in the March quarter compared to Rs 3,560 crore in Q4FY20.

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Share of Kotak Mahindra Bank rose over 2 per cent after the private sector lender reported a standalone net profit of Rs 1,682 crore for the quarter ended March 2021 against Rs 1,267 crore in the corresponding quarter a year ago.

The stock hit an intraday high of Rs 1,764.10 on the BSE. It has risen 6 per cent in the last six months and 35 per cent over the last 12 months.

Net Interest Income (NII) rose 8 per cent to Rs 3,843 crore in the March quarter compared to Rs 3,560 crore in Q4FY20. Net interest margin stood at 4.39 per cent against 4.72 per cent in the year-ago quarter.

Gross non-performing assets (NPA) rose to 3.25 per cent in Q4FY21 against 2.25 per cent as of 31st March 2020. Net NPAs stood at 1.21 per cent as against 0.71 per cent as of March 31, 2020.

"The bank carries COVID-related provisions of Rs 12.8 billion (0.6% of advances), which provides us comfort, and estimate credit cost at 1% for FY22E (v/s 1.3% in FY21)," said Motilal Oswal Securities.

"The bank continues to report steady progress in building a strong liability franchise, with the CASA ratio improving to 60% (highest in the industry)," it added.

COVID related provisions as at March 31, 2021 stood at Rs 1,279 crore. In accordance with the Resolution Framework for COVID-19 and MSME announced by RBI, as at March 31, 2021, the Bank has implemented, for certain eligible borrowers, restructuring of ` 435 crore (0.19% of net advances), the company said.

The Board of Directors of the Bank has recommended a dividend of Rs 0.90 per equity share having a face value of Rs 5, for the year ended March 31, 2021.

The stock ended in green at Rs 1,732.15, up 0.46 per cent against previous close of Rs 1,724.30 on the BSE.

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