Kotak Bank Net Income increased above 25% On all outstanding debts

Private sector lender, Kotak Mahindra Bank reported a 26 per cent rise in net income at ₹ 2,071.00 crore in the June quarter, buoyed by record margins and a decline in bad loans. On a total basis, the city-headquartered financial services group, which is also into life and non-life insurance, share broking, asset reconstruction, and AIF, among others, logged in 57% rise in net income at ₹ 2,760 crore in the June quarter over the corresponding period a year ago, the bank said. The higher profitability is despite the bank booking a loss of over ₹ 800 crore from all financial operations.

Explaining comparatively low amount of losses from the bond market,” joint managing director Dipak Gupta told PTI that as much as 61 per cent of its bond holdings are in the AFS (available for sale) category and only 39 per cent in held to maturity segment, which has helped the bank to prevent a larger hit.

The chief financial officer Jaimin Bhatt not interested to detail how much government securities the bank holds above the regulatory requirement of 18%. In a low credit demand or bank credit scenario, banks park their funds in government securities which are highly liquid assets and the average system level statutory liquidity ratio is over 23 per cent.

Total income for the quarter improved to ₹ 8,582.00 crore from ₹ 8,100.81 crore, boosted by an increase in interest income to ₹ 7,338.49 crore, from ₹ 6,479.78 crore in the year-ago period for that company.

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