Private sector lender Kotak Mahindra Bank reported a 12.3% increase in net profit to Rs. 1,025 crore for the quarter ended June 30, 2018.

Provisions for bad loans and contingencies stood at Rs. 470 crore for June quarter compared with Rs. 204 crore in the year-earlier period. The bank’s gross non-performing assets as at June end stood at 2.17% of gross advances compared with 2.58%, a year ago.

Slippages down

Slippages during the quarter were Rs. 321 crore, down from Rs. 594 crore in Q1FY18, the bank said in a statement.

Net interest income (NII) — the difference between interest earned and interest expended — for the period rose marginally to Rs. 2,583 crore from Rs. 2,246 crore.

Net Interest Margin (NIM) for the quarter stood at 4.3% compared with 4.5% in the year-earlier period. The bank’s stocks closed at Rs. 1350.25, or 3.7% down, on the BSE after the bank reported muted NII growth and margin erosion.

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