Kotak Bank FY07 net up 19%

Kotak Mahindra Bank's net profit for the quarter ended March 31, 2007 rose 7.5% to Rs 37.3 crore from Rs 34.7 crore in the previous quarter. The bank's profit for the year ended March 31, 2007 increased 19% to Rs 141.4 crore from Rs 118.2 crore.

"The profit numbers are after considering provision on stressed assets portfolio acquired from other banks and non-banking finance company of Rs 4.6 crore , additional standard asset provisioning consequent to the change in RBI guidelines of Rs 31.2 crore and a provision of Rs 4.1 crore on account of liability for employee benefits in accordance with AS 15,'' Uday Kotak, executive vice chairman and managing director, Kotak Mahindra Bank said.

Consolidated  net profit of the group increased 30% to Rs 170 crore in the quarter ended March 31, 2007 . Profit of the group for the financial year March 31, 2007 increased 57% to Rs 538.2 crore from Rs 342.5 crore.

"We continue to to focus on building scale with value creation. We now have over 105 branches, and by mid next year we would like to open 200 branches. The bank will also focus on building a strong corporate book with focus on maintaining a healthy net interest margin and asset quality. We will also expand our overseas presence in the Middle East,'' added Kotak.

The bank's net interest margin for the quarter is around 4.5% and net non- performing assets at 0.18%. Its capital adequacy ratio stands at 13.46%. Its total income for the quarter stood at Rs 521.06 crore as against Rs 293.44 crore.

Other income for the bank rose to Rs 874.6 crore from Rs 764.7 crore.

"On the international business front, the asset management company is  planning to launch a Sharia fund in the Middle East. We plan to launch funds across geographies including Japan with a partner,'' said C Jayaram, executive director, wealth management, Kotak Mahindra Bank.