Kotak Bank net profit zooms 117%

BANKING SCORECARD

Kotak Mahindra Bank's net profit increased by 117 per cent to Rs 75.4 crore in the second quarter ended September, 2007 from Rs 34.8 crore a year ago, on the back of a healthy growth in net interest income and other income.

The bank's net interest income doubled to Rs 283.4 crore and other income rose 96 per cent to Rs 122.3 crore. Total income grew to Rs 714.16 crore against Rs 357.64 crore. Net interest margin stood at around 5.2 per cent.

The group's consolidated profit, excluding the life insurance business, was up by 147 per cent to Rs 262.4 crore compared with Rs 106.4 crore in the same quarter a year ago. Profits, including the life insurance business, were up 157 per cent to Rs 241.5 crore as against Rs 93.9 crore.

"The business outlook for banking and financial services sector is positive. Overall, the banking industry has seen some softening of home loan rates, particularly in June, July and August. The interest rates are softening and banks have been gradually reducing deposit rates. On the lending side, banks are awaiting signals from the Reserve Bank of India in its annual policy statement on October 30,'' Uday Kotak, executive vice chairman and managing director, Kotak Mahindra Bank, said.

On a standalone basis, the bank has seen a 53 per cent growth in advances to Rs 12,900 crore. Deposits grew 76 per cent to Rs 14,400 crore, and the share of current and savings accounts (CASA) was 26 per cent.