Kotak Mahindra Bank's consolidated net rises 42%

Total income of the bank also increased to Rs 4,333 cr vs Rs 3,331.6 cr

Kotak Mahindra Bank posted a 42 per cent growth in consolidated net profit at Rs 627 crore for the first quarter (Q1) ended June 2013, up from Rs 443 crore in the corresponding period of the previous year. The robust growth in the net interest income of the bank, profits from motor finance and life insurance outfit boosted the bottom line.

Total income rose to Rs 4,333 crore from Rs 3,332 crore and net interest income went up 27.4 per cent to Rs 1,143 crore from Rs 897 crore. Other income, including from treasury, rose to Rs 1,356 crore from Rs 861 crore.

The bank stock closed marginally higher at Rs 710.60 on the BSE on Thursday, after hitting an intra-day low of Rs 678.35.

Net interest margin (NIM) was almost flat at 4.8 per cent, compared to 4.7 per cent a year ago. Dipak Gupta, joint managing director, said the bank would be able to protect the NIM level as it was possible to pass on any increase in the cost of funds, especially at the short-end in lending. Gross non-performing assets rose to 1.58 per cent from 1.34 per cent a year ago. The provision coverage ratio on non-performing assets (NPAs) was up 59 per cent. Net NPAs were up at 0.80 per cent against 0.66 per cent. Loan book rose by 20 per cent to Rs 68,418 crore at the end of June, up from Rs 57,049 crore a year ago.

On a standalone basis, the private sector lender posted a 43 per cent jump in net profit at Rs 403 crore. Advances rose by 19 per cent to Rs 50,539 crore from Rs 42,318 crore in June 2012 and deposits grew by 26 per cent to Rs 52,454 crore. The share of savings and current account in total deposits was 29 per cent.

Asked about the impact of the economic slowdown on business, Gupta said there may be moderation in pace of loan growth to 15 per cent in current financial year. For year 2012-13, its loan book had grown by 24 per cent. Percentage of gross non-performing assets (NPAs) increased to 1.95 per cent from 1.6 per cent, while net NPA went up to 0.98 per cent from 0.80 per cent. Gupta said the commercial vehicles and construction equipment segment have shown stress. Also, a few corporate accounts slipped into the NPA category in Q1.