Tag: fiscal year

Kotak Mahindra Bank Q2 net down 7%

Banking & Finance

[ad_1]

Read More/Less


Private sector lender Kotak Mahindra Bank reported a seven per cent year-on-year (y-o-y) drop in its standalone net profit for the second quarter of the fiscal due to higher provisions. For the quarter-ended September 30, the bank’s standalone net profit stood at ₹2,032.01 as against ₹2,184.48 crore in the same period last fiscal. However, on a sequential basis, its net profit increased by 24 per cent from ₹1,642 crore for the first quarter of the fiscal.

Its net interest income increased three per cent to ₹4,021 crore in the second quarter of the fiscal from ₹3,897 crore a year ago.

Net interest margin for the second quarter of the fiscal stood at 4.45 per cent from 4.5 per cent a year ago.

The bank’s other income increased by 26.5 per cent on an annual basis to ₹1,812.59 crore in the quarter under review.

Provisions jumped up by 27.2 per cent to ₹423.99 crore in the July to September 2021 quarter from ₹333.22 crore in the same period last fiscal.

The bank said it holds Covid-19 provisions of ₹1,279 crore which has not been utilised during the first half of the fiscal year.

Asset quality

As on September 30, 2021, gross non-performing assets stood at 3.19 per cent of gross advances as against 3.56 per cent as on June 30, 2021 and 2.55 per cent as on September 30, 2020. It was lower than ₹703.52 crore in the first quarter of the fiscal.

Net NPA was 1.06 per cent of net advances at the end of the second quarter versus 1.28 per cent at the end of the first quarter and 0.64 per cent as on September 30, 2020.

Jaimin Bhatt, Group President and Group Chief Financial Officer, Kotak Mahindra Bank said that gross slippages amounted to ₹1,293 crore and recoveries and upgrades stood at ₹1,350 crore in the second quarter of the fiscal.

In accordance with the Resolution Framework for Covid-19 related stress of individuals and small businesses, the bank has implemented total restructuring of ₹495 crore (0.21 per cent of advances) as on September 30, 2021.

In addition, in accordance with the Resolution Framework for Covid-19 related stress of MSMEs, the bank has implemented total restructuring of ₹767 crore (0.33 per cent of advances) as at September 30, 2021.

The bank implemented resolution plans in 6,522 accounts with an exposure of ₹226.66 crore under the RBI’s Resolution Framework 1.0. Of this, 27.32 crore slipped into NPA in the first half of the fiscal and the bank wrote-off ₹17.68 crore.

Under Resolution Framework 2.0, the lender has implemented resolution plans in 2,234 accounts with a total exposure of ₹268.63 crore. On account of this, the bank increased provisions by ₹37.73 crore.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

RBI extends current a/c freeze deadline, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Mumbai: The RBI has given banks time until October 31 to comply with its circular on introducing discipline in the opening of current accounts.

The RBI has said that banks should escalate to the Indian Banks’ Association (IBA) any issues they face in implementing the directive, and if it still remains unresolved they should be forwarded to the RBI for regulatory consideration.

According to a PSU bank chief, the RBI in its meeting with public sector lenders made it clear that the circular needs to be implemented in spirit but if there are operational issues faced by customers, they should be resolved at the industry level.

In a fresh circular on the guidelines for current accounts, the RBI reiterated that it does not apply to borrowers who have not availed of cash credit (CC) or overdraft (OD) facility and the banking sectors exposure to them is below Rs 5 crore.

In the case of borrowers who have not availed of CC/OD facility from any bank and the exposure of the banking system is Rs 5 crore or more but less than Rs 50 crore, there is no restriction on lending banks to such borrowers from opening a current account. Even non-lending banks can open current accounts for such borrowers though only for collection purposes.

According to bankers, technically there is no reason for a borrower with CC/OD facility to undertake transactions through another account. Bankers said that the main reason why many borrowers sought to keep a separate current account was to control their collections. “Many customers choose to transfer funds from their other account to repay their loans as they fear that using their loan account for collections could lead to problems when they are short on funds,” said a banker.

However, several businessmen said that while they have old loans with public sector banks, they need the technology-based products of private banks particularly in the area of trade finance. The central bank’s circular comes at a time when some customers in Kerala initiated legal action to stall the implementation of the RBI directives.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,