Kotak Mahindra Bank in an expansion mode

Kotak Mahindra Bank, formerly known as Kotak Mahindra Financial Services Ltd., plans for expansion of its branches when other banking giants are still struggling with mounting NPA’s. The flagship company of Kotak Mahindra Group which got an RBI banking licence in 2003 is planning to add 60 new branches by the end of this year.

The bank is also making some technological advances and is encouraging use of tablets for account opening. Use of the device would make the process simpler, as the account will be opened the same day without the customer visiting the branch.

The Bank had earlier made headlines with merger of ING Vysya with itself. The QoQ results have been impressive. Bank has reported a 32 per cent rise in net profit for this quarter ended 31 March 2016 on account of a rise in net interest income and a largely stable asset quality. Net profit has risen to Rs 695.78 crore from Rs 527.14 crore a year ago.

The bank’s asset quality for the quarter fell marginally as gross non-performing asset (NPA) ratio for the January-March period was at 2.36%, compared with 2.3% in the previous quarter. 

On the contrary the BANKEX, the banking index which was up in the last two days owing to the news of funding from the centre for distressed assets, has consolidated in early trades. The scrip of Kotak Bank, which opened positive on Wednesday, at 11:52 am is trading at Rs 758.20, which is down by 1.65 per cent. However, from the past 3 months the share prices have increased by a whopping 18 per cent.

The shares on an intraday basis have corrected themself and a pull - back is expected and the shares will certainly bounce back in the near future.