Kotak Mahindra Bank profit up 31.2 Per Cent in Sept Quarter

Private sector lender Kotak Mahindra Bank's has reported more than street estimates by a 31.2 per cent growth in its consolidated net profit for the September quarter due to higher net interest income (NII) and other income.

Consolidated profit shot up 31.2 per cent to Rs 942 crore during the quarter compared to Rs 718 crore in year-ago period. The earnings include ING Vysya Bank’s figures. Therefore it is not strictly comparable to last year’s as the acquisition of ING Vysya Bank Ltd was effective 1st April 2015.

The net interest income (difference between interest earned and expended) jumped to Rs 2,278 crore, up 44 per cent as compared to Rs 1,584 crore a year ago. Other income also grew 35 per cent to Rs 970 crore from Rs 720 crore.

Gross non-performing assets (NPAs) for the quarter stood at 2.08 per cent as compared to 1.59 per cent in the quarter ended 30 June. Net NPAs were at 0.93 per cent versus 0.84 per cent in the June quarter. Provisions and contingencies for the quarter were at Rs 196.66 crore compared to Rs 321.9 crore for the June quarter and Rs 58.22 crore in the September quarter last year.

The bank said it had received approval from the Reserve Bank of India (RBI) for the merger of ING Vysya Bank with effect from April 1, 2015 and accordingly the results for the quarter and half year ended September 30, 2015 are for the merged entity and not comparable with previous periods.

The Capital adequacy ratio (as per BASEL III norms) has stand at 16.46 per cent versus 16.90 per cent (Q-o-Q).

As of September-end 2015, the total advances jumped 65 per cent to Rs 1.35 lakh crore on account of ING Vysya Bank’s loan book. Similarly, total deposits almost doubled to Rs 1.20 lakh crore.

The stock price closed up 3.54 per cent at Rs 687.50 on the NSE as compared to 0.57 per cent decline in CNX Nifty.