Kotak Mahindra Bank opened in the positive, up at 1798, rising over 1.5% to Rs.1823 but from there is fell to Rs.1758 and is now trading in the red at Rs.1776 levels.
The bank, for Q3FY21, reported a 16% (YoY) rise in net profit at Rs.1854 crore while NII rose 17% at Rs.4007 crore but NIM fell 18 bps to 4.51%.
The worry was on the asset quality front. Gross NPA came in at 2.26% v/s 2.55% (QoQ) while Net NPA was at 0.50% v/s 0.64%. In terms of Interim Order of Supreme Court, Bank had not classified any NPAs post 31st August, 2020. Had the Bank classified the borrowers more than 90 days overdue on 31st Dec, 2020 as NPA, Gross NPA would be 3.27% (30th Sep, 2020:2.70%); Net NPA would be 1.24% (30th Sep, 2020. Of this increase, a disproportionate portion is in unsecured consumer retail which has flown through to +90 days in Q3FY21.
But the Bank has reassured, saying that it has made provision for such advances including towards interest accrued but not collected for the entire period, with moratorium.
COVID related provisions as at December 31, 2020 stood at Rs.1,279 crore.