Kotak Bank’s consolidated profit up 26% in Q1

Private sector lender Kotak Mahindra Bank posted a 26 per cent rise in consolidated net profit for the quarter ended June 2017 (Q1), at ~1,347 crore from ~1,067 crore in yearago quarter, driven by increase in net interest and other income. Consolidated net interest margin (NIM) was flat at 4.4 per cent for Q1. On a standalone basis, its net profit increased 23 per cent to ~913 crore in the quarter from ~742 crore in the corresponding period last year.

For the standalone entity, the net interest income — the difference between interest earned and interest expended — rose 17 per cent to ~2,246 crore in Q1, from ~1,919 crore in Q1 of FY17. Other income rose 23 per cent to ~907 crore from ~733 crore in the year-ago quarter. Standalone figures cover banking operations, while consolidated figures capture the performance of group entities such as insurance and securities, as well as banking.

The bank’s savings deposits grew by 44 per cent to ~44,026 crore as of June 30, 2017, compared with ~30,564 crore as of June 30, 2016. Current account deposits for the period grew 27 per cent to ~27,742 crore, compared with ~21,854 crore as of June 30, 2016.

Current account and savings account (Casa) deposits, as a percentage of total deposits, as of June 30 stood at 43.9 per cent compared with 37.4 per cent a year ago. Average Casa deposits grew by 33 per cent to ~62,452 crore for Q1, the lender said in a statement.

Advances for the standalone bank rose by 18 per cent to ~1,42,359 crore from ~1,20,765 crore in Q1 of FY17. Consolidated advances increased by 19 per cent to ~1,75,474 crore as of June 30, from ~1,47,004 crore a year ago. For the standalone bank, gross non-performing assets ratio saw a slight increase at 2.58 per cent in June compared with 2.50 per cent in the year-ago quarter.

As of June 30, restructured loans considered standard were down to ~80 crore, which amounted to 0.06 per cent of net advances.

Consolidated capital adequacy ratio (CAR), including unaudited profits according to Basel-III norms, as of June 30, was 19.5 per cent and Tier-1 ratio was 18.8 per cent. During the quarter, the bank and the group raised ~5,803 crore by issuing shares at ~936 each through qualified institutional placement. As of June 30, the bank had a network of 1,362 full-fledged branches and 2,173 ATMs.