 "In a first, Kotak launches an offline funds transfer facility")
Shares of Kotak Mahindra Bank have moved higher by 4.5% to Rs 694 on the NSE after the bank reported better-than-expected standalone net profit at Rs 570 crore against an average analyst estimate of Rs 545 crore for the quarter ended September 30, 2015 (Q2).
Net interest income (NII), the difference between interest earned and interest expended, was slightly higher at Rs 1,679 crore against analyst estimate of Rs 1,654 crore for the quarter.
As of June 2015, the bank’s NII and net profit stood at Rs 1,598 crore and Rs 190 crore respectively.
Asset quality, more or less, was stable during the quarter as gross non-performing assets (NPA) increased marginally to 2.35% in September quarter compared to 2.31% in previous quarter. Net NPA was at 1.05% against 1.04% in preceding quarter.
The bank said it had received approval from the Reserve Bank of India (RBI) for the merger of ING Vysya Bank with effect from April 1, 2015 and accordingly the results for the quarter and half year ended September 30, 2015 are for the merged entity and not comparable with previous periods.
Announcing the results, Uday Kotak, Executive Vice Chairman & Managing Director, Kotak Mahindra Bank said, “Integration process is progressing as planned and we are seeing positive traction in SA growth, retail loans and insurance distribution.”
Various initiatives have been kicked off for cost and income synergies which will start showing results in due course. With our wider national footprint and the breadth of product & service offerings, we are well poised to capitalize on the opportunity offered by the country which is on track for a sustainable growth story, he adds.
At 01:26 PM, the stock was up 3% at Rs 683 on the NSE as compared to 0.11% decline in CNX Nifty. A combined 2.86 million shares changed hands on the counter on the NSE and BSE so far.
Net interest income (NII), the difference between interest earned and interest expended, was slightly higher at Rs 1,679 crore against analyst estimate of Rs 1,654 crore for the quarter.
As of June 2015, the bank’s NII and net profit stood at Rs 1,598 crore and Rs 190 crore respectively.
Asset quality, more or less, was stable during the quarter as gross non-performing assets (NPA) increased marginally to 2.35% in September quarter compared to 2.31% in previous quarter. Net NPA was at 1.05% against 1.04% in preceding quarter.
The bank said it had received approval from the Reserve Bank of India (RBI) for the merger of ING Vysya Bank with effect from April 1, 2015 and accordingly the results for the quarter and half year ended September 30, 2015 are for the merged entity and not comparable with previous periods.
Announcing the results, Uday Kotak, Executive Vice Chairman & Managing Director, Kotak Mahindra Bank said, “Integration process is progressing as planned and we are seeing positive traction in SA growth, retail loans and insurance distribution.”
Various initiatives have been kicked off for cost and income synergies which will start showing results in due course. With our wider national footprint and the breadth of product & service offerings, we are well poised to capitalize on the opportunity offered by the country which is on track for a sustainable growth story, he adds.
At 01:26 PM, the stock was up 3% at Rs 683 on the NSE as compared to 0.11% decline in CNX Nifty. A combined 2.86 million shares changed hands on the counter on the NSE and BSE so far.
