Kotak Mahindra Bank net profit rises 47%

Kotak Mahindra Bank today said its standalone net profit for the quarter ended March 31, 2013 increased by 47% from a year earlier to Rs 436 crore, aided by improved performance of treasury, retail and corporate banking businesses.

The bank's consolidated profit after tax grew 19% during the last financial year to Rs 2,188 crore. Consolidated net interest margin during the January-March quarter remained unchanged from a year earlier at 4.8%.

On a standalone basis, the private lender's full year net profit was up 25%. Net interest income, or the difference between interest income and interest expense, was up 31% from a year ago to Rs 903 crore during the quarter.

The profit before tax of treasury and balance sheet management unit (BMU) nearly trebled from a year ago to Rs 62 crore during the fourth quarter. Retail banking business' operating profit increased 66%, while corporate banking reported 19% rise in profit before tax.

Advances were up 24% at Rs 48,469 crore at the end of March, 2013. Standard restructured loans were 0.02% of net advances. The provision coverage ratio of non-performing assets was at 68.2%. Total assets managed by Kotak Mahindra Group were estimated at Rs 55,243 crore at the end of last financial year.

Deposits grew 32% to Rs 51,029 crore driven by 44% rise in savings deposits. The bank had 437 full-fledged branches across 255 locations and 961 ATMs.

Kotak Mahindra Bank's capital adequacy ratio was 16% while tier I ratio was 14.7% at the end of March, 2013. The board has approved, post balance sheet date, preferential issue of 20 million equity shares at Rs 648 per share aggregating to Rs 1,296 crore to Heliconia Pte, an affiliate of Government of Singapore Investment Corporation Pte.

The bank's shares ended today at Rs 715.60 on the National Stock Exchange (NSE), up 1.2% from previous close.