Kotak Mahindra Bank Q4 profit down 4% due to Covid19 related provisions

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During the quarter, standalone profit also came down by 10% to Rs 1,267 crore as compared to Rs 1,408 crore in the same period a year ago

Kotak Mahindra Bank reports 4% decline in Q4 net profit to Rs 1,952 crore. (PTI Photo)

New Delhi: Kotak Mahindra Bank on Wednesday reported 4 percent decline in consolidated net profit at Rs 1,951.82 crore for the fourth quarter ended March 2020 due to COVID-19 related provisions.

The private sector lender clocked a profit of Rs 2,038.27 crore in the same quarter of the previous financial year.

Total income declined to Rs 12,084.71 crore during the latest quarter, down from Rs 13,823.33 crore in the year-ago period, the bank said in a statement.

During the quarter, the standalone profit also came down by 10 percent to Rs 1,267 crore as compared to Rs 1,408 crore in the same period a year ago.

However, total income grew to Rs 8,294.07 crore as against Rs 7,672.56 crore in the year-ago period.

Gross non-performing assets (NPAs) or bad loans of the lender were 2.25 percent of the gross loans as on 31 March, 2020, slightly up from 2.14 percent at March-end 2019.

However, net NPAs were marginally down at 0.71 percent from 0.75 percent a year ago.

"Advances as on 31 March, 2020 were up 7 percent to Rs 2,19,748 crore as against Rs 2,05,695 crore as on 31 March, 2019. Bank has made a COVID-19 related general provision of Rs 650 crore, which is higher than the RBI requirement. Total provisioning towards Advances (including specific, standard and COVID-19 provisions) is higher than the GNPA of the bank," it said.

In accordance with the RBI circular dated 17 April, it said, the board of directors of Kotak Mahindra Bank has not recommended any dividend for 2019-20.

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