By Jiahui Huang


Kotak Mahindra Bank's net profit rose in the third quarter, as a jump in interest income helped offset a steep rise in provisions.

The Indian bank said Saturday that net profit for its fiscal third quarter ended Dec. 31 climbed 6.8% on year to 42.65 billion rupees ($512.9 million).

Revenue rose 31% to INR240.83 billion, with interest earned expanding 32% and other income climbing 30%.

The ratio of gross nonperforming assets to gross advances fell to 1.68% from 1.69% in the preceding quarter and 1.91% a year ago, the bank said.

The Mumbai-based bank's total provisions and contingencies rose to INR6.62 billion from INR1.49 billion a year ago, including INR1.90 billion in provision for investments in alternate investment funds after the Indian central bank tightened rules for lenders related to such funds.

The bank said separately that its board approved plans to raise up to INR100 billion via the issuance and private placement of non-convertible debentures in the fiscal year ending March 2025.

Citi kept a neutral rating with a target price of INR2,040 for the stock after the earnings announcement. It said the growth in net interest income beat its estimates, while earnings fell short due to a treasury loss and the AIF investment provision.

Shares last closed at INR1,806.45. Indian markets are closed Monday for a holiday.


Write to Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

01-22-24 0050ET