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Tuesday, January 20, 2015

Kotak Bank net profit jumps 37% to Rs. 465 cr

Kotak Mahindra Bank’s net profit for the three-month ended December 31, 2014 jumped 37 per cent to Rs. 465 crore driven by robust other income and lower provisions during the quarter.

The net profit stood at Rs. 340 crore in the year-ago quarter.

Net interest income or the difference between interest earned and interest expended grew 16 per cent to Rs. 1,059 crore in Q3FY15 from Rs. 913 crore in the same quarter in FY14. Other income soared 65 per cent to 494 crore from Rs. 300 crore.

During the quarter, on account of write-back of Rs. 56 crore, provisions dipped substantially to Rs. 30 crore from Rs. 70 in the third quarter last year.

On the asset quality front, gross non-performing asset (NPA) ratio improved to 0.97 per cent of total advances as on December 2014 compared with 1.1 per cent as on December-end 2013.

ING Vysysa Bank deal

During the quarter, Kotak Mahindra Bank made a significant buyout of ING Vysya Bank for an all-stock deal. “...The amalgamation would be effective from April 1, 2015 or such other date as may be fixed mutually by ING Vysya and Kotak and sanctioned by the RBI,” the bank said.

The board of Kotak Bank and ING Vysya at their respective meetings held on November 20 last year approved an amalgamation of ING Vysya with Kotak Bank in the ratio of 725 shares of Kotak Bank for every 1,000 shares of ING Vysya.

Consolidated results

Consolidated net profit during the quarter increased to Rs. 717 crore from Rs. 591 crore in Q3FY14.

Net interest income grew 13 per cent to Rs. 1,579 crore from Rs. 1,399 crore.

Kotak Mahindra Bank shares were trading higher at Rs. 1,392 per share, up 0.22 per cent over their previous close on the BSE.

Source : Thehindubusinessline


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