Non-public sector lender Kotak Mahindra Financial institution on Monday reported 10 per cent fall in its standalone revenue after tax at Rs 1,244 crore within the April to June quarter.
In Q1 FY20, it had a web revenue of Rs 1,360 crore. The financial institution mentioned it made a further Covid-19 associated normal provision of Rs 616 crore in Q1 FY21.
Covid-related provisions as on June 30 stood at Rs 1,266 crore or 0.62 per cent of web advances. Whole provisioning in the direction of advances (together with particular, commonplace and COVID provisions) was greater than the gross non-performing belongings (GNPAs).
On June 30, GNPAs stood at Rs 5,619 crore as in comparison with Rs 4,614 crore final 12 months. In percentile phrases, GNPAs had been 2.7 per cent to gross advances and web NPAs had been 0.87 per cent to web advances.
Nonetheless, the web curiosity earnings for Q1 FY21 elevated by 17.eight per cent to Rs 3,724 crore from Rs 3,161 crore in Q1 FY20. The web curiosity margin (NIM) was at 4.Four per cent.
The common financial savings deposits crossed Rs 1 lakh crore, rising by 34 per cent to Rs 1.05 lakh crore for Q1 FY21 in comparison with Rs 78,654 crore for Q1 FY20. The common present account deposits grew by 10 per cent to Rs 36,066 crore in comparison with Rs 32,679 crore for Q1 FY20.
The financial institution’s capital adequacy ratio as per Basel III norms is 21.2 per cent and tier I ratio is 20.6 per cent. Through the quarter, the financial institution raised Rs 7,442 crore by a professional institutional placement (QIP) issuance of 6.5 crore fairness shares.
“The continued slowdown in financial actions has impacted lending enterprise, payment earnings era from the sale of third get together merchandise or utilization of debit and bank cards in addition to assortment effectivity,” mentioned Kotak Mahindra Financial institution.
This slowdown might influence buyer defaults and consequently improve in provisions on the group degree. There’s a excessive degree of uncertainty relating to the time required for all times and enterprise to get regular, it added.
The extent to which COVID-19 pandemic will influence the financial institution’s operations and monetary outcomes are depending on the longer term developments that are extremely unsure, mentioned the lender. (ANI)