Kotak Bank Q1 profit up 11%

At Rs 698 crore, Kotak Mahindra Bank has posted 11 per cent growth in consolidated net profit for the quarter ended June, primarily owing to a rise in net interest income. For the corresponding period last year, the bank's net profit stood at Rs 627 crore.

On Wednesday, the Kotak Mahindra Bank stock closed at Rs 884.25 on BSE, up 1.47 per cent.

On a consolidated basis, the bank's total income rose to Rs 5,006 crore from Rs 4,332 crore in the year-ago period. While net interest income increased 10 per cent to Rs 1,510 crore, the net interest margin improved to five per cent from 4.8 per cent in the year-ago period.

While other income grew 38 per cent to Rs 1,871 crore from Rs 1,356 crore in the year-ago period, profit from sale of investments, including revaluation (insurance business), increased to Rs 761 crore from Rs 237 crore in the June quarter of 2013-14.

Premium from the insurance business fell to Rs 442 crore from Rs 472 crore in the year-ago period.

Advances rose 13 per cent to Rs 77,076 crore in the June quarter from Rs 68,418 crore in the corresponding period last year. In the same period, gross non-performing assets fell from 1.58 per cent to 1.56 per cent.

On a standalone basis, deposits increased 17 per cent to Rs 61,407 crore; savings deposits rose 37 per cent to Rs 11,013 crore.

Shareholders, as well as the board of directors, have approved the ceiling on foreign shareholding in the bank be put at 40 per cent. As of Tuesday, foreign institutional investment in the bank stood at 33.57 per cent.

 

Kotak Mahindra and associates are significant shareholders in Business Standard Limited