Kotak Bank offers 1:1 bonus, net doubles

Kotak Mahindra Bank has announced a 1:1 bonus share issue, subject to shareholders approval. The bank's board, which met here today to approve its audited results, also declared 24 per cent dividend for the year ended March 31, 2004, against 21 per cent last year.

Kotak Mahindra Bank vice-chairman Uday Kotak told reporters that the dividend would entail an outgo of over Rs 15 crore.

The bank's net profit for the quarter ended March 31, 2004, rose by 105 per cent to Rs 20.59 crore against Rs 10.06 crore for the preceding year.

Total income for the fourth quarter rose by 46 per cent to Rs 116.92 crore, against Rs 80.09 crore in the corresponding quarter of the previous year.

On the growth plans for 2004-05, Kotak said the bank would add 23 branches taking the network to 40 branches by the end of March 2005. The bank also planned to grow its retail asset book by 30 to 40 per cent.

For the year ended March 31, 2004, the bank's net profit increased by 75 per cent to Rs 78.73 crore, compared with Rs 44.96 crore in 2003.

Total income during the year rose to Rs 383.9 crore. Of this, interest income stood at Rs 288.41 crore (Rs 181.18 crore) and fee-based income Rs 95.49 crore against Rs 72.14 crore recorded in the previous year.

Total provisions fell to Rs 5.73 crore compared to Rs 19.56 crore in the preceding year. The cost of funds for the bank stood at 5 per cent in 2004 against 7 per cent recorded last year.

The Kotak Mahindra group's net profit went up by 138 per cent to Rs 174.44 crore against Rs 73.32 crore, and total income to Rs 1,167.73 crore against Rs 711 crore.

The securities broking business and premium income from the life insurance business were significant contributors to the group's total income.

Corporate banking business grew by 658 per cent to Rs 237 crore against Rs 31 crore. Treasury income for the period under review stood at Rs 169 crore. The bank's retail lending increased by 13 per cent to Rs 618.29 crore against Rs 548.85 crore.

The bank's capital adequacy ratio stood at 15.25 per cent against 25.97 per cent last year, and net non-performing asset decreased to 0.14 per cent compared with 0.25 per cent in the preceding year.