Kotak Bank Q3 profit rockets 68%

Kotak Mahindra Bank has clocked a 67.84 per cent rise in net profit in the third quarter ending December 31, 2003, to Rs 18.95 crore against Rs 11.29 crore in the corresponding period of the previous year.

The bank has reported a 66.60 per cent rise in net profit for the nine months ended December 31 at Rs 58.13 crore, up from Rs 34.89 crore in the corresponding period of the previous year.

On a consolidated basis, the net profit of the bank for the third quarter rose by 36.50 per cent to Rs 44.27 crore against Rs 32.43 crore The consolidated net profit for the nine months rose by 74.96 per cent to Rs 112.24 crore against Rs 64.15 crore.

"We promised to convert a nation of savers into a nation of investors. We are walking the talk now. The consolidated fee-based income of the bank has gone up from Rs 28.73 crore in the third quarter of fiscal 2003 to Rs 86.17 crore in the third quarter of current fiscal," Uday Kotak, vice-chairman and managing director of the bank told Business Standard.

The fee-based income accounts for 39 per cent of the consolidated topline of the bank. "Our objective is to push up the fee-base income further to 40-50 per cent," Kotak said. Profit on sale of investment, on the other hand, dipped from Rs 50.94 crore to Rs 20.17 crore.

"This illustrates the fact that we are not depending on treasury income for our growth," Kotak pointed out. The Kotak Bank scrip closed in the Bombay Stock Exchange at Rs 373.15, up by 1.21 per cent.

The total income of the bank on a standalone basis for the third quarter ended December 31, 2003 increased by 63.49 per cent to Rs 95.66 crore (Rs 58.51 crore) on the back of a sharp rise in interest income.

The interest income rose by 83.42 per cent to Rs 69.92 crore (Rs 38.12 crore). The other income of the bank rose by 26.23 per cent to Rs 25.74 crore (Rs 20.39 crore).

The operating expenses for the third quarter rose by 87.38 per cent to Rs 35.49 crore (Rs 18.94 crore) and interest expenses rose by 37.45 per cent to Rs 30.46 crore (Rs 22.16 crore). The capital adequacy ratio of the bank for the third quarter was at 13.89 per cent.

The consolidated net NPAs as on December 31, 2003 was at Rs 11.7 crore or 0.27 per cent of net advances. The bank opened four branches during the third quarter and two additional branches in January 2004. It now operates with 14 branches across 10 cities. It plans to open four branches in the current quarter.