Kotak Bank Q3 net up 71% to Rs 32.6 cr

New-generation private sector bank, Kotak Mahindra Bank, reported a 71 per cent rise in its net profit for the quarter ended December 31, 2005, to Rs 32.6 crore, from Rs 19.1 crore reported in the corresponding quarter of the previous financial year.

On a consolidated basis, the group's net profit rose 88 per cent to Rs 81.8 crore from Rs 43.4 crore a year ago. Consolidated net profit for the nine-month period increased 99 per cent to Rs 211.6 crore against Rs 106.6 crore for the corresponding period ended December 2004.

The bank's total income in Q3 grew 61 per cent to Rs 230.92 crore from Rs 143.32 crore. Interest earned for the quarter ended December 2005 rose 61.2 per cent to Rs 182.19 crore (Rs 112.96 crore), while the interest expended grew 24 per cent to Rs 90.88 crore (Rs 55.42 crore).

The bank posted a 59 per cent rise in its net interest income at Rs 91.3 crore versus Rs 57.5 crore reported in Q3FY05.

The bank's operating profit for the third quarter saw a rise of 58 per cent to Rs 45.63 crore, from Rs 28.88 crore reported a year earlier.

As on December 31, 2005, the bank's deposit base was to the tune of Rs 6,550 crore, up 88 per cent from Rs 3,480 crore a year ago. Its advances for the period under review grew 72 per cent to Rs 5,317 crore.

The bank currently has 53 branches in 34 cities.

Highlighting the major focus areas for the coming fiscal, Kotak Mahindra Bank Executive Vice-Chairman and Managing Director Uday Kotak said, "We see three big opportunities for growth "" growing urbanisation, increased smaller town and rural participation, and international integration."

The capital adequacy ratio of the bank in Q3 fell to 11.05 per cent from 13.73 per cent reported in the corresponding quarter last year.

During Q3 of FY06, the consolidated fee income for the Kotak group rose 85 per cent to Rs 310 crore (Rs 167.9 crore) on the back of income from securities broking, investment banking, premium income from the life insurance business and distribution of financial products.