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The standalone net profit of private sector lender Kotak Mahindra Bank rose almost four-fold to Rs. 742 crore for the June 2016 quarter. In Picture: Uday Kotak, Executive Vice Chairman and Managing Director of Kotak Mahindra Bank poses at the company's corporate office in Mumbai January 15, 2015 (Representational image).Reuters file

Kotak Mahindra Bank reported a 290 percent spike in its standalone net profit to Rs. 742 crore for the June 2016 quarter (Q1) on account of a 20 percent rise in net interest income and a 41 percent fall in provisioning for bad loans. 

The Mumbai-based lender's net profit stood at Rs. 190 crore in the corresponding period last year.

Kotak Mahindra Bank earned net interest income of Rs. 1,919 crore, up 20 percent from Rs. 1,598 crore for the June 2015 quarter, while provisioning for bad loans dropped to Rs. 179.51 crore in Q1 from Rs. 305.31 crore in the year-ago period ended June 2015.

The bank's total income rose to Rs. 5,120 crore from Rs. 4,583 crore for the June 2015 quarter.

The gross non-performing assets (NPAs) as a percentage of total advances stood at 2.50 percent and net NPAs at 1.21 percent, up from 2.31 percent and 1.04 percent, respectively, as on June 30, 2015.

The capital adequacy ratio remain unchanged from the March 2016 quarter at 16.34 percent.

On a consolidated basis, Kotak Mahindra Bank reported net profit of Rs. 1,067 crore in Q1, an increase from Rs. 516 crore in the year-ago period, while total income was Rs. 7,866 crore in Q1 as against Rs. 6,384 crore for the June 2015 quarter.

The consolidated advances rose 17 percent to Rs. 1,47,004 crore as on June 30, 2016, from Rs. 1,25,522 crore as on June 30, 2015.

The bank merged private sector lender ING Vysya Bank, with the Reserve Bank of India (RBI) approving the merger with effect from April 1, 2015. 

Kotak Mahindra Bank has a network of 1,333 branches as of June 30, 2016. In 2003, Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company, was converted into a commercial bank after receiving the requisite licence from the RBI.

Shares of Kotak Mahindra Bank closed at Rs. 766.20 apiece, down 2.02 percent from their previous close, on the Bombay Stock Exchange on Friday. The Sensex closed 93 points higher at 27,803.

The group also has interests in mutual fund and insurance businesses.