Kotak Mahindra Bank on Thursday said its consolidated net profit for the quarter ended March rose 17 per cent to Rs 491 crore from Rs 419 crore in the corresponding period of the previous year. The earnings growth was driven by higher profits from life insurance, car financing, banking and investment banking businesses.
On a standalone basis, the private lender reported 23 per cent growth in net profit at Rs 249 crore during the quarter, compared with Rs 203 crore a year ago.
For 2010-11 (April-March), the bank’s consolidated net profit was Rs 1,567 crore, up 20 per cent from a year earlier. Consolidated net interest margin was at 5.6 per cent during the year.
Kotak Mahindra Bank has declared a dividend of Rs 0.5 per share having a face value of Rs 5.
| IMPRESSIVE QUARTERLY NUMBERS (Standalone) | ||
| Kotak Mahindra Bank | ||
| (In Rs crore) | Mar '11 | % Chg* |
| Interest earned | 1,232.63 | 39.95 |
| Other income | 191.30 | -23.94 |
| Total income | 1,423.93 | 25.76 |
| Interest expended | 611.06 | 72.27 |
| NII | 621.57 | 18.16 |
| Net profit | 248.70 | 22.81 |
| Source: Capitaline *Over previous year Data compiled by BS Research Bureau | ||
“The consolidated numbers reflect the strength of diversity in our business model,” Uday Kotak, executive vice-chairman and managing director, said in his post-earnings comments.
In January-March, the bank’s net interest income, or the difference between interest income and interest expense, grew 18 per cent year-on-year to Rs 622 crore.
The bank said its asset quality improved during the quarter as loan recoveries outpaced formation of new bad loans. The lender recovered around Rs 100 crore in January-March. Its provision coverage ratio was 70 per cent as on March-end.
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The consolidated capital adequacy ratio as on March 31 was 19.5 per cent under Basel II, with the tier-I ratio at 18.1 per cent.
Kotak Mahindra Old Mutual Life Insurance’s net profit rose 61 per cent to Rs 71 crore, while Kotak Mahindra Prime, through which the bank offers car financing, reported 50 per cent jump in profit after tax at Rs 87 crore.
Kotak Mahindra Capital Company’s net profit was at Rs 30 crore during the quarter, compared with Rs 13 crore a year earlier.