 "Kotak Bank consolidated net profit up marginally")
However, on a standalone basis, the private lender's net profit declined from a year ago as it made higher provisions during the quarter. The bank's standalone net profit was Rs 340 crore in October-December period compared to Rs 362 crore in the corresponding quarter of last year.
The standalone net interest income, or the difference between interest income and interest expense, grew by 11% on a year-on-year basis to Rs 913 crore during the three-month period. Net interest margin improved 30 basis points from a year earlier to 4.8% at the end of the third quarter.
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The standalone advances increased by six% from a year earlier to Rs 53,149 crore at the end of December, 2013. The growth was capped as the bank is cautiously slowing down its lending to commercial equipment and commercial vehicle (CECV) segment. Without considering CECV lending, the growth in advances was 12% on a year-on-year basis.
Provisions increased to Rs 69.74 crore in October-December period from Rs 42.36 crore a year earlier. Gross non-performing asset ratio deteriorated by 55 basis points from a year ago to 2.01%, while net bad loan ratio increased by 46 basis points on a year-on-year basis to 1.1% at the end of the quarter. Restructured loans considered standard was Rs 42 crore or 0.08% of net advances.
The bank's savings deposits grew by 38% to Rs 9,106 crore. The share of low-cost current account savings account (CASA) deposits was 30% of total deposits at the end of December, 2013.
Kotak Mahindra Bank closed the quarter with a capital adequacy ratio of 19.2% as per Basel III rules. Its tier I capital adequacy ratio was 17.9%.