Kotak Mahindra net up 47% on robust loan growth

Higher interest income and robust loan growth helped Kotak Mahindra Bank post a 47 per cent increase in net profit at Rs 436 crore in the January to March quarter of 2013. The mid-sized private lender had posted a net profit of Rs 297 crore in the year-ago quarter.

Net interest income (difference between interest earned and expended) increased by 31 per cent to Rs 903 crore from Rs 688 crore in Q4 of 2012-13. Other income during the quarter rose 43 per cent to Rs 364 crore.

Total advances

The bank’s net profit in the full financial year increased 25 per cent to Rs 1,361 crore from Rs 1,085 crore in FY-12.

Total advances as on March 31, 2013 were up 24 per cent year-on-year to Rs 48,469 crore, while deposits increased 32 per cent to Rs 51,029 crore.

Net non-performing assets (NPA) ratio increased to 0.64 per cent from 0.61 per cent in the fourth quarter last year.

“The real economy continues to be slow. Therefore, going forward, banks will have to watch and make adequate provisions. Particularly, in the second half of 2013-14 we hope to see some pick-up in growth,” said Uday Kotak, Vice-Chairman and Managing Director, Kotak Mahindra Bank.

Other income

As on March 31, 2013, capital adequacy ratio of the bank as per Basel II was at 16.05 per cent with Tier I ratio at 14.7 per cent.

The bank’s consolidated full year profit increased 18 per cent to Rs 2,195 crore from Rs 1,867 crore in FY-12. This includes profit from its subsidiaries Kotak Mahindra Prime, Kotak Securities, Kotak Mahindra Capital.

The Board also approved a dividend of 0.70 per share (face value Rs 5 each) for the year ended March 31, 2013.

The bank’s shares ended at a new high of Rs 716.90 per share, higher by 1.60 per cent on the BSE on Thursday.

Source: thehindubusinessline