The private-sector lender’s total income rose by 18.5% to `7,672 crore on account of a 18% rise in its NII to `3,048 crore. NII is the difference between interest earned and interest paid by a bank. Provisions fell by 44.2% y-o-y to `171.3 crore. The bank has no exposure to IL&FS and Jet Airways, said the management.

The net interest margin (NIM) rose by 15 basis points (bps) y-o-y to 4.48 %. “During this quarter, we have laid focus on our risk adjusted returns which has showed on the NIMs,” said Jaimin Bhatt, CFO, Kotak Mahindra Bank. “We expect NIMs to be around 4.2-4.5% in FY20.”

The asset quality depreciated with gross non-performing assets (NPAs) rising by 7 bps quarter-on-quarter to 2.14% of the loan book. Net NPAs were up 4 bps sequentially at 0.75%. “Our SMA2 loans amounted to `138 crore for the quarter of which some have been classified as NPAs, but the book is in fine fettle,” said Uday Kotak, MD & CEO, Kotak Mahindra Bank. The capital adequacy ratio (CAR) under Basel-3 norms amounted to 17.5%. The minimum CAR under Basel-3 is 10.5%.

Total deposits grew by 17.25% year-on-year to `2.2 lakh crore for the quarter, compared with `1.9 lakh crore in Q4FY18. Advances grew 21.1% to `2.05 lakh crore for the quarter against `1.6 lakh crore in the same period a year ago. The current account savings account (CASA) ratio as on stood at 52.5%. “Sequential advances growth is muted but the yearly growth was led by agriculture loans on account of growth in CV and tractor loans,” said Bhatt.