Kotak Bank Q3 net dips 64%

Kotak Mahindra Bank today reported a 64 per cent decline in its net profit to Rs 130.9 crore for the quarter ended December 2008 compared to the year-ago period. Total income fell by 32.14 per cent to Rs 1,684.75 crore during the quarter under review, from Rs 2,482.72 crore in the same period.

Net interest margin (NIM), the main yardstick to assess a lender's profitability, improved to 6 per cent as against 5.7 per cent at the end of the quarter ended December 2007. Kotak Mahindra Capital and Kotak Securities bore the brunt of the slowdown in the capital markets.

 

While the former recorded Rs 1.9 crore loss as against a net profit of Rs 21.58 crore during the corresponding quarter a year ago, the latter saw a 97.3 per cent dip in net profit – to Rs 3.97 crore from Rs 146.73 crore -- in the same period .

The bank’s insurance arm, Kotak Mahindra Old Mutual Life Insurance, booked a net profit of Rs 9.36 crore as against a loss of Rs 20.57 crore for the same quarter last year. The mutual fund arm almost doubled its profit to Rs 6 crore. During the October-December period, the bank disbursed Rs 23,865 crore loans as compared to Rs 21,420 crore during the same period last year.

For the nine-month ended December 2008, the bank reported a 41 per cent decline in its PAT at Rs 441.72 crore, and a total income of Rs 5,011.51 crore. On a standalone basis, net profit dropped 30 per cent to Rs 71.1 crore during the quarter, but the net interest income grew 10.13 per cent to Rs 382.6 crore.

The bank recorded a 10.49 per cent rise in its lending operations at Rs 566.6 crore during the third quarter as against Rs 512.8 crore for the corresponding three months of last year. Total advances on a standalone basis grew 21 per cent to Rs 17,679.4 crore. Gross NPAs were Rs 372.8 crore, or 2.1 per cent of advances, while net NPAs were Rs 210.9 crore, or 1.2 per cent of advances.