Kotak Mahindra Bank today announced a 12.04 per cent rise in net profit to Rs 23.07 crore for the quarter ended March 31, 2005 against Rs 20.59 crore in the corresponding quarter in the last financial year. | |
| Net profit for the full year rose by 7.83 per cent to Rs 84.89 crore, up from Rs 78.72 crore in the previous year. |
| |
| The bank board recommended a bonus issue in the ratio of 3:2 (three shares for two shares held). After the issue, the bank's paid-up capital will rise over Rs 300 crore. |
| |
| "The bonus issue will enable the bank to meet the Reserve Bank of India's licence condition," said Uday Kotak, executive vice-chairman and managing director of Kotak Mahindra Bank. In addition to the bonus issue, the board has also declared a dividend of 12.5 per cent for the year 2004-05. |
| |
| The Kotak Bank scrip today gained 1.86 per cent on the Bombay Stock Exchange, closing at Rs 397.70. "In the current financial year, the bank will focus on its international business, asset recovery, private equity fund and real estate venture fund," said Kotak. |
| |
| "We have bought Rs 1,000 crore worth non-performing loans from other banks in 2004-05. There is a huge potential in the asset recovery business as this will directly contribute to the profit-and-loss account," said Kotak. The bank would also expand its presence in the United Arab Emirates, he added. |
| |
| At present, the group has offices in New York, London, Dubai and Mauritius. The bank also plans to expand its network from 42 branches to around 70 by March 2006 and 100 branches by March 2007. |
| |
| In 2005, the net interest income of the bank was at Rs 225.48 crore, up 31 per cent from Rs 170.87 crore in the previous year. Its total income increased to Rs 1,711.15 crore for the year ended March 2005 compared with Rs 1,164.69 crore in the previous year. |
| |
| Other incomes of the bank for the year ended March 31, 2005 increased to Rs 132.07 crore against Rs 94.80 crore. The consolidated net profit of the group for the quarter ended March 2005 rose to Rs 64.27 crore against Rs 61.91 crore. Net profit of the group for the year ended March 2005 dipped to Rs 170.90 crore against Rs 174.15 crore. |
| |
| Reshuffle of management |
| |
| Kotak Mahindra Bank today announced changes in its top management. Ajay Sondhi, vice-chairman and managing director, Kotak Mahindra Capital Company Ltd (KMCC), has resigned owing to personal reasons. He will relocate to Singapore. |
| |
| Falguni Nayar, managing director, institutional equities, Kotak Securities Ltd (KS), has been appointed managing director, KMCC. |
| |
| Alroy Lobo, co-head, institutional equities, KS, has been appointed managing director, institutional equities. Shanti Ekambaram, group head, corporate and institutional banking, will now take additional charge as the group relationship head for all wholesale products. |
| |
|
| |
