Kotak Bank net profit soars 72% to Rs 257 cr

Kotak Mahindra Bank has posted 71.7 per cent growth in its consolidated net profit at Rs 257.28 crore for the first quarter ended June 2009, compared to Rs 149.84 crore in April-June 2008 on improvement in interest and fee-based income.

The consolidated total income for the reporting quarter rose to Rs 2,345.25 crore from Rs 1,487.24 crore and net interest income (NII) was up by 8.5 per cent to Rs 625.06 crore from Rs 576.08 crore. On a standalone basis, the bank’s standalone profits rose by 65.61 per cent to Rs 90.31 crore from Rs 54.53 crore a year ago and the NII by 16 per cent to Rs 409 crore from Rs 352.5 crore.

Chief Financial Officer Jaimin Bhatt said the net interest margin (NIM) was 6 per cent for reporting quarter as against 5.9 per cent a year ago. Margins may come under pressure but may not drop significantly. Other income (consolidated) rose to Rs 1,282.52 crore at the end of June 2009 from 445.34 crore a year ago.

Its advances, at the consolidated level, moved up to Rs 23,273.1 crore from Rs 23,169.5 crore. The profile of the loan book has changed over the last 12 months with a rising share of wholesale segment (corporate and SME). The share of retail segment has dipped to around 80 per cent from 90 per cent in one year, Bhatt said.