Private sector lender Kotak Mahindra Bank has reported a rise of 16 per cent in its consolidated net profit to Rs 384 crore compared to Rs 331 crore during the same period of the previous year.
On a standalone basis, the bank’s net profit increased by 32 per cent to Rs 188 crore as compared to Rs 142 crore in the third quarter of the previous year, mainly due to healthy growth in retail business.
Net interest income (standalone) was up 17 per cent to Rs 571 crore from Rs 487 crore during the reporting period.
Net interest margins (NIMs) for the group were down to 5.4 per cent as compared to 6.2 per cent last year. “Maintaining NIMs at current levels looks difficult as the bank is slowly shifting focus from only retail to retail and corporate,” said Jaimin Bhatt, chief financial officer, Kotak Mahindra Bank.
On a consolidated basis, the bank recorded 37 per cent growth in advances, while total assets under management as on December 31 were Rs 51,000 crore as compared to Rs 52,400 crore a year ago.
Currently, around 33 per cent of the bank’s outstanding loan book comprises loans given to corporates, while the rest is retail. “Within the retail segment, focus is more on mortgages, which are low yielding” said Bhatt.
The bank witnessed deposit growth of 28 per cent. Current account and savings account deposits comprised 28 per cent of the total deposits. For the full year 2010-11, the bank expects credit and deposit growth of around 30 per cent.
The bank has maintained the provision coverage ratio on non performing assets at 72 per cent as against the Reserve Bank of India’s mandate of 70 per cent.
UBI net up 33.90%
Owing to higher yield on advances and lower cost of funds, public sector United Bank of India has reported a net profit of Rs 163.12 crore for the quarter-ended December, as against Rs 121.86 crore in the year-ago period, up 33.90 per cent.
| HOW THEY STACK UP PERFORMANCE IN QUARTER ENDED DECEMBER 31 | ||||||||
| (in Rs crore) | Kotak Mahindra Bank | SIB | UBI | YES Bank | ||||
| 10-Dec | % Chg* | 10-Dec | % Chg* | 10-Dec | % Chg* | 10-Dec | % Chg* | |
| Interest earned | 1,653.80 | 39.60 | 622.66 | 27.65 | 1,630.97 | 21.87 | 1,126.15 | 79.79 |
| Other income | 1,023.34 | -15.37 | 49.70 | 15.26 | 145.68 | 8.44 | 161.67 | 26.50 |
| Total income | 2,677.14 | 11.83 | 672.36 | 26.64 | 1,776.65 | 20.65 | 1,287.82 | 70.76 |
| Interest expended | 730.87 | 64.27 | 417.87 | 32.24 | 1,071.23 | 8.45 | 802.99 | 93.29 |
| NII | 922.93 | 24.76 | 204.79 | 19.21 | 559.74 | 59.70 | 323.16 | 53.21 |
| Net profit | 383.56 | 15.74 | 75.36 | 20.65 | 163.14 | 33.87 | 191.12 | 51.77 |
| *Over previous year; Kotak Mahindra Bank's results is consolidated, others are standalone Source : CapitalineData Compiled by BS Research Bureau | ||||||||
The net interest margin improved to 3.20 per cent, as against 2.14 per cent in the same period last year. At Rs 386 crore, the operating profit also saw a 84.50 per cent rise.
However, provisions increased by 154 per cent to Rs 223 crore. The rise was on account of a 34 per cent increase in provisioning towards non-performing assets (NPAs) and a 600 per cent rise in the same for pension and gratuity.
SIB net up Rs 75.36 crore
South Indian Bank has reported a net profit of Rs 75.36 crore for the December quarter, as against Rs 62.46 crore in the year-ago period. The net profit for the nine months ended December increased to Rs 210.80 crore from Rs 195.14 crore last year.
The total business increased from Rs 35,511 crore to Rs 46,186 crore on year, registering growth of 30 per cent. While deposits rose 30.79 per cent, from Rs 20,643 crore to Rs 26,998 crore, advances increased to Rs 19,188 crore, up 29.06 per cent.
YES Bank net up 51.8%
YES Bank, one of the new generation private banks of the country, today reported a 51.8 per cent rise in its net profit at Rs 191.1 crore for the three months ended December 31, 2010, as against Rs 125.9 crore in the corresponding period last year, on stable net interest income and sustained fee income growth.
Net interest income for the quarter stood at Rs 323.1 crore — up 53.2 per cent — from Rs 210.9 crore in the same period last year. Non-interest income was higher by 26.5 per cent at Rs 161.7 crore, as compared to Rs 127.8 crore in the corresponding quarter last year.
The bank’s total advances grew by 66.3 per cent to Rs 31,112.2 crore as on December 31, 2010, from Rs 18,710.4 crore in the year-ago period. In the same period, total deposits increased by 79 per cent to Rs 39,452.8 crore, as against Rs 22,038.6 crore in the year-ago period.
Net interest margin (NIM) of the bank marginally declined to 2.8 per cent from 3.1 per cent a a year earlier.
“The decline in NIM is a temporary correction. We believe with the interest rate changes we have made, we will commensurate with the policy rate changes and be able to restore NIM at three per cent from the next financial year,” Kapoor said.
During the last quarter, the private sector lender had increased interest rates in two tranches of 50 basis points each, he said.
