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Kotak Mahindra Bank said on Tuesday that its consolidated profit after tax for the quarter ended December 31, 2013, increased a tad, by 2.4 per cent, from a year earlier to Rs 591 crore. Higher earnings from businesses such as car financing, securities, life insurance and investment banking aided its consolidated profit.
However, on a stand-alone basis, the private lender’s net profit declined from the year-ago period, as it made higher provisions during the quarter. The bank's stand-alone net profit was Rs 340 crore during October-December 2013, compared to Rs 362 crore in the corresponding quarter of the previous year.
The stand-alone net interest income grew 11 per cent on a year-on-year (y-o-y) basis to Rs 913 crore during the three-month period. Net interest margin improved 30 basis points from a year earlier to 4.8 per cent at the end of the third quarter.
The stand-alone advances increased by six per cent from a year earlier to Rs 53,149 crore at the end of December 2013. The growth was capped as the bank was cautiously slowing down its lending to commercial equipment and commercial vehicle (CECV) segment. Without considering CECV lending, y-o-y growth in advances was 12 per cent.
Provisions increased to Rs 69.74 crore in the October-December 2013 period from Rs 42.36 crore a year earlier. Gross non-performing asset ratio deteriorated by 55 basis points from a year ago to 2.01 per cent, while net bad loan ratio increased by 46 basis points, y-o-y, to 1.1 per cent at the end of the quarter. Restructured loans considered standard was Rs 42 crore, or 0.08 per cent, of net advances.
The bank’s savings deposits grew 38 per cent to Rs 9,106 crore. The share of low-cost current account savings account deposits was 30 per cent of total deposits at the end of December 2013.
Kotak Mahindra Bank closed the quarter with a capital adequacy ratio of 19.2 per cent according to Basel-III rules. Its Tier-I capital adequacy ratio was 17.9 per cent.
Kotak Mahindra and associates are significant shareholders in Business Standard Limited
