Kotak Mahindra Bank on Wednesday reported a 6.52 per cent fall in consolidated net profit for the March quarter at Rs 1,905.18 crore because of a multifold increase in provisions, and warned of asset quality issues building up in the unsecured lending space such as credit cards and personal loans during the Covid-19 pandemic.
The bank reported a profit of Rs 2,038.27 crore in January-March 2018-19. It reported a net profit of Rs 1,951.82 crore from ordinary activities after tax before minority interest in the latest quarter.
On a standalone basis, the bank’s post tax profit declined 10 per cent to Rs 1,266.60 crore during the quarter.
In 2019-20, the profit grew 22 per cent to Rs 5,947 crore compared with the preceding fiscal.
The bank’s executive vice- chairman and managing director Uday Kotak said the unsecured retail lending category of loans will go through a period of stress going ahead, and the spectre of retrenchments will only make it more pronounced.