Kotak Mahindra Bank On Tuesday said that its consolidated net profit fell 12.26 per cent to Rs 210.66 crore during the quarter-ended March 2009, as against Rs 240.10 crore during the fourth quarter of 2007-08.
The bank’s total income was 20.14 per cent higher at Rs 2,237.67 crore during the fourth quarter of 2008-09, compared with Rs 1,862.51 crore in the corresponding period last year. While other income rose 49.45 per cent to Rs 1,133.22 crore, interest income stayed flat at Rs 1,104.45 crore.
Interest payments rose by 1.88 per cent to Rs 476.82 crore, but operating expenses went up by 42.45 per cent to Rs 1,295.83 crore on account of higher allocation for policyholders’ reserves, surrender expenses and claims from the life insurance business.
The private sector lender also saw a 46.70 per cent increase in gross non-performing assets, which rose to Rs 832.08 crore at the end of March 2009, as against Rs 567.19 crore at the end of the previous financial year. While non-tax provisions fell 4.39 per cent, net NPAs rose by 25.27 per cent to Rs 454.31 crore at the end of March this year.
But the bank said that its net interest margin rose 40 basis points during the year to 6 per cent at the end of March. Kotak Mahindra Bank’s board has recommended a dividend of 0.75 per share. The face value of the bank’s shares is Rs 10.
During 2008-09, Kotak Mahindra Bank’s consolidated net profit fell 34.28 per cent to Rs 652.39 crore, as against Rs 991.23 crore in the previous year.
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On a standalone basis, during the fourth quarter of the last financial year, net profit rose by 48.20 per cent to Rs 102.57 crore, as against Rs 69.21 crore during January-March 2008. Total income rose 14.32 per cent to Rs 803.02 crore, as against Rs 918.09 crore at the end of the fourth quarter of 2007-08.
The bank’s capital adequacy ratio was estimated at 19.86 per cent at the end of March 2009, as against 18.65 per cent a year ago. During the year, the bank saw the share of current and savings bank account (Casa) balances in total deposits rise by 5 percentage points to 32 per cent.