New generation private sector lender Kotak Mahindra Bank’s April-June net profit rose 35% to Rs 252 crore on the back of robust loan book growth. Net interest income (NII) increased 18% to Rs 568 crore during the quarter. However, the net interest margin (NIM) has contracted by 30 bps to 4.90%.
“Due to rising cost of funds, our NIM is down,” said Dipak Gupta, executive director, Kotak Mahindra Bank.
“We expect maintain a NIM 5%. We will have a secular loan growth at around 30-35% from all segments including corporate, commercial and consumer loans. The book show grows at 25-30% in FY12. Moreover, we have not seen any stress on our asset quality.”
During the quarter, the bank’s standalone loan book expanded 39% to Rs 32,339 while deposits grew 29% to Rs 31,047 crore. CASA ratio (Current Account Savings Account) fell from 28% to 27%.
Gross non-performing assets (NPAs) increased from 1.23% to 1.88% while net NPAs rose from 0.50% to 0.66%. According to the CFO of the bank, Jaimin Bhatt, June quarter amounted to a slippage of around Rs 30 crore and it was from all sectors.
Consolidated net profit of Kotak Mahindra Bank has jumped 27% (YoY) in the first quarter of FY12. Consolidated net profit was at Rs 416 crore from Rs 327.7 crore in the year-ago period.
As on June 30, bank’s capital adequacy ratio stood at 18.2%, much above the RBI’s mandated 9% requirement. The lender has no plan to raise capital.
Kotak Mahindra Bank shares were at Rs 475.90, down Rs 14.60, or 2.98% at the close of Thursday’s trade.
Source: www.moneycontrol.com
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