Kotak Bank net zooms 99%

Kotak Mahindra Bank's net profit rose by 99 per cent to Rs 47.7 crore in the quarter ended June 30 from Rs 23.9 crore a year earlier. Jaimin Bhatt, chief financial officer, attributed the profit growth to the sharp rise in the bank's retail, corporate and treasury businesses.

In the retail banking portfolio, the home loan business has grown by 60 per cent and the personal loan business by 90 per cent, Bhatt said.

Total income was up 84 per cent to Rs 594.4 crore from Rs 306.5 crore. The net profit of the group, excluding the life insurance business, was up 43 per cent to Rs 164.2 crore against Rs 114.6 crore and consolidated total income was up 79 per cent to Rs 1392.4 crore compared with Rs 776.6 crore. The bank declared 7 per cent dividend. 
 

STRONG NUMBERS Consolidated results in Q1FY08
	Rs crore	% chg
Total income	1392.4	^ 79
Net interest income	320.8	^ 46
Other income	670.0	^ 81
PAT (excl Life insurance)	164.2	^ 43
PAT (incl Life insurance)	145.9	^ 40
Advances	16,600.0	^ 56

Net interest margin stood at 5.1 per cent against 5.2 per cent in the corresponding quarter last financial year.

Other income has risen to Rs 89.4 crore as against Rs 56.4 crore in the corresponding quarter last year.

The bank's advances portfolio increased by 60 per cent to Rs 11,600 crore as compared to Rs 7,300 crore. The deposit base increased by 49 per cent to Rs 11,400 crore compared with Rs 7,600 crore.

The bank's non performing assets and capital adequacy ratio as on June 30, 2007 stood at 0.29 per cent and 11.33 per cent, respectively.

To boost its capital adequacy and support the bank's growth, the board has also decided to raise fresh equity capital of $300 million.

"The bank board has proposed to raise additional capital by issue of 17 million equity shares in the domestic or international market. Fresh capital infusion will boost the bank's capital adequacy to around 16 per cent and also lead to dilution in promoter holding,'' added Bhatt.