Private lender Kotak Mahindra Bank has reported a 7% fall in standalone net profit to Rs 2,032 crore for the quarter ended September compared to Rs 2,184.5 crore a year ago.

The bank's net interest income (NII), the difference between interest earned and interest expended, rose 3%  year-on-year to Rs 4,020.6 crore from Rs 3,897 crore in the year-ago quarter. Net interest margin (NIM) was at 4.45%.

Gross non-performing assets (NPA) ratio stood at 3.19% compared to 3.56% in the preceding quarter, but higher than 2.70% in the year-ago quarter. But net NPA improved to 1.06% from 1.28% in the June quarter.

Provisions and contingencies declined to Rs 424 crore from Rs 703.5 crore in the preceding quarter. A year ago, this stood at Rs 333 crore.

Provisions on account of Covid-19 stood at Rs 1,279 crore out of the total provisions of Rs 7,637 crore.

Provision coverage ratio stood at 67% as on September 30, the bank said in a regulatory filing to the exchange. As per RBI’s resolution framework for Covid-led stress of individuals and small businesses, the bank restructured loans worth Rs 495 crore as on September 30. Restructuring of loans to micro, small and medium enterprises (MSME)  stood at Rs 767 crore. 

The bank’s current account deposits grew 32% to Rs 53,280 crore in the September 2021 quarter from Rs 40,454 crore a year ago. Savings deposits grew 13% year-on-year to Rs 1,23,479 crore.