Kotak Mahindra Bank Q1FY17 net profit soars 290%

Kotak Mahindra Bank, India's fourth largest private lender by branch network, reported a 290-per cent jump, in its standalone net profit for the three-months ended 30 June 2016 at Rs742 crore against net profit of Rs190 crore in the corresponding quarter of the previous fiscal.

The extraordinary spurt in net income follows Kotak Mahindra Bank's merger of its larger peer ING Vysya Bank a year ago. However, the profit rise was below analysts' forecasts and the asset quality for the bank weakened marginally in the June quarter.

Kotak Mahindra Bank was estimated to show a 300-per cent jump in net profit for the June-ended quarter.

Net interest income, the difference between interest earned and interest expended, for Q1 of FY17 was around Rs1,919 crore, up around 20 per cent from the corresponding period a year earlier, the bank said.

As of June 2016, the combined entity had total deposits of Rs1,40,028 crore and advances of Rs1,20,765 crore.

Kotak Mahindra Bank completed the merger with Bangalore-based ING Vysya Bank in April 2015, which it acquired in an all-stock deal announced in November 2014, valuing the smaller bank to a $2.4 billion entity.

Kotak Mahindra Bank has a total network of 1,333 full-fledged branches and 2,034 ATMs across the country.

The bank said it plans to reach 1,400 branches by end-December 2017.

Kotak Mahindra Bank said mobile transactions were at Rs3,000 crore per month in June 2016.

Kotak Mahindra Bank shares, which closed down 2.79 per cent at Rs 760.15 on the Bombay Stock Exchange after the earnings were announced on Thursday, spurted in morning trade today.