Kotak Mahindra Bank reported a 16 per rise in its consolidated net profit to Rs 502 crore for the second quarter (July-September) of the current financial year, on the back of strong growth in loan book. Consolidated advances were up 21 per cent at Rs 61,255 crore during the quarter.
The consolidated net interest margin (NIM) for the second quarter was 4.7 per cent, a shade less than last year’s 4.8 per cent.
On a standalone basis (only banking operations), the bank’s net profit went up to Rs 280 crore, compared with Rs 260 crore in the same quarter a year ago.
“This quarter, we had a provision of Rs 70 crore, which includes one particular transaction in which we bought out retail portfolio. According to our policies, we have taken a full knock on the provision line. The provision includes close to Rs 42 crore towards this account, which we hope to recoup over a period,” said Jaimin Bhatt, president and group chief financial officer, Kotak Mahindra Bank.
“This is part of our business and we are reasonably specialised in it. These are essentially home loans. We have provided 100 per cent for it. But over the next 12-36 months we will keep recovering it,” said Dipak Gupta, joint managing director.
On a standalone basis, net interest income (NII) of the bank grew 25 per cent year-on-year to Rs 758 crore. Advances as on September 30 were up by 22 per cent year-on-year (y-o-y) to Rs 45,443 crore and deposits grew 25 per cent y-o-y to Rs 45,463 crore.
As on September 30, savings account deposits grew by 66 per cent from to Rs 5,926 crore a year ago. Current and savings account (CASA) deposits also grew 32 per cent to Rs 12,321 crore.