MUMBAI, Jan 21 (Reuters): India's Kotak Mahindra Bank, opens new tab reported lower-than-expected third-quarter net profit on Saturday, weighed down by higher bad loan provisions and shrinking lending margins.
The private bank reported standalone net profit of 30.05 billion rupees ($361.7 million) in the quarter ended Dec. 31, compared to analysts' expectations of 31.94 billion rupees, per LSEG data.
The standalone numbers do not include the business of its subsidiaries.
Provisions and contingencies rose to 5.79 billion from 1.49 billion rupees a year ago.
Kotak Mahindra Bank also made provisions of 1.43 billion rupees on exposure to alternative investment funds (AIFs) following stricter norms by the central bank, it said.
"We do have additional exposure to AIFs... but this (exposure) is not involving any kind of evergreening," CFO Jaimin Bhatt said in an earnings conference.
Net interest income - the difference between interest earned and paid out - increased 16 per cent on-year to 65.54 billion rupees.
However, net interest margin (NIM) - the difference between interest obtained on loans and paid on deposits expressed as per centage - shrank to 5.22 per cent from 5.47 per cent last year, but remained flat from the previous quarter.
Kotak Mahindra Bank misses Q3 profit
FE Team | Published: January 21, 2024 23:38:19
Kotak Mahindra Bank misses Q3 profit
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