Kotak’s consolidated profit rose 16% to `384 crore. It earned `1,277.60 crore as interest, up 41.26% from the `904.40 crore it earned in the same period last year.
Yes Bank’s profit rose 51.8% to `191.1 crore, the highest in 25 quarters since its inception, as the bank’s core interest income rose 53.2% to `323.1 crore.
Yes Bank’s demand largely came from engineering, construction, healthcare, and agriculture sectors while Kotak sold mortgages, auto loans and also dropped to 2.8% from 3.1% financed commercial vehicles. Yes Bank’s NIM is the difference while Kotak’s dropped to 5.4% from 6% last year. NIM between interest charged on loans and that paid on deposits.
Yes Bank managing director and chief executive officer Rana Kapoor called the drop in NIM temporary because of recent interest rate changes as not all of its loans could be repriced.
Kotak Mahindra Bank Ltd and Yes Bank Ltd posted higher profit for the three months ended December, riding on interest income largely due to loan demand from companies as well as individuals.
However, net interest margin (NIM) contracted for both private banks as the cost of funds increased and they could not fully pass on the rate hikes to customers.
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