Kotak Mahindra Bank Q1 net profit surges 107 per cent
22 July 2010
Kotak Mahindra Bank, one of the new generation private banks, on Wednesday reported 107-per cent growth in its first quarter net profit to Rs187 crore, a little higher than street estimates, driven by a healthy growth of 24 per cent in its net interest income. The bank's total income rose 18 per cent to Rs1,057 crore during the quarter compared to the previous year's period.
Provisions were at Rs56 crore, down 64 per cent from a year ago. Net interest margin of Kotak Mahindra declined 40 basis points to 5.7 per cent during the April-June quarter.
Advances rose 35 per cent to Rs23,200 crore, while deposits were up 38 per cent at Rs24,100 crore as on 30 June 2010.
The private lender said its net non-performing asset ratio improved 174 basis points to 1.33 per cent, while gross bad loan ratio declined 139 basis points from a year ago to 3.29 per cent. Capital adequacy ratio of the bank was 16.8 per cent as on June end.
The bank's executive director Dipak Gupta attributed the profit growth to a rise in both retail and corporate advances. ''The reductions in provisions also added to the profits,'' he said. Banks are required to set aside money to provide for bad loans. Kotak Mahindra Bank's bad loans have come down.
''We would continue to see a loan growth of about 25-30 per cent,'' Gupta said.