Monday, October 29, 2012

Kotak Mahindra Bank Q2 net profit up 8% to Rs 280 cr


Private sector lender Kotak Mahindra Bank  's second quarter standalone (only banking operations) net profit moderated nearly 8% year-on-year to Rs 280 crore on the back of higher provisions, which stood at Rs 71 crore as against an excess provision Rs 2 crore (write-back) in Q2, 2011-12.

Net interest income or the difference between interest earned and paid out, grew 25% y-o-y to Rs 758 crore.

An analysts' poll by CNBC TV18, estimated net profit up by 11% while NII at 25% y-o-y.  

The loan book expaned about 22% y-o-y to Rs 45,443 crore. The gross non-performing asset (NPA) ratio remained unchanged at 1.61% y-o-y. However, net NPA ratio rose from 0.56 % in Q2, FY12 to 0.75% in Q2, FY13.

"During the quarter the bank has acquired a portfolio of NPAs from a NBFC where the accounts were NPAs for less than two years. In accordance with the RBI guidelines, the entire amount of such purchase (Net of subsequent recovery till 30th September, 2012) amounting to Rs 41.96 crore has been considered as NPA as at 30th September, 2012," the bank said in a press statement. 

The bank's deposit base grew 25% y-o-y to Rs 45,463 crore while CASA deposits increased 32% to Rs 12,320 crore. The share of current and savings account to total deposits stood at around 27%.

The new generation bank is currently offering 6-7% rate of interest on savings account (SA). In the three month period, SA recorded a growth of 66% y-o-y to nearly Rs 6,000 crore.

On consolidated basis, Kotak Mahindra Bank's net profit upped by 16% y-o-y to Rs Rs 502 crore. Net interest margin fell to 4.7% as against 4.8% a year back. However, Kotak is one of the few banks which enjoys NIM above 4% mark. Any NIM above 3% is perceived to be standard margin.


Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal 
Head Dealer 
DENIP Consultants Pvt Ltd

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