While Kotak Mahindra Bank's total revenues increased over 47%, its net interest margin declined to 4.7% from 4.8% same period a year ago
Mumbai: Kotak Mahindra Bank reported a 16% rise in consolidated net profit at Rs502 crore in the second quarter ended 30th September on the back of higher core income from the banking unit, reports PTI.
The private sector bank's total income rose 47.24% to Rs4,035.75 crore compared with Rs2,740.84 crore in the same period last fiscal.
"Out of the consolidated profit of Rs502 crore, a major chunk of Rs280 crore was contributed by our banking operation, while the rest came from other entities like Kotak Mahindra Prime, Kotak Securities and Kotak Mahindra Old Mutual Life Insurance, among others," Group Chief Financial Officer Jaimin Bhatt told reporters here, while announcing the Q2 earnings.
Kotak Mahindra Prime posted a net profit of Rs114 crore, while in case of Kotak Securities it was Rs40 crore. Kotak Mahindra Old Mutual contributed Rs47 crore and profit of Kotak Mahindra Investments stood at Rs16 crore.
Bhatt said the net interest margin (NIM) came down to 4.7% in the July-September period compared to 4.8% a year earlier.
He said consolidated advances rose 21% to Rs61,255 crore, helping the balance-sheet cross Rs1 lakh crore- mark for the first time.
On the asset quality front, gross NPA improved a tad to 1.35% against 1.38% a year ago, while net NPA rose to 0.63% from 0.46%.
On a standalone basis, Kotak Mahindra Bank posted a 7.8% rise in net profit at Rs280 crore in the reporting quarter, as it had to make a provision of Rs42 crore, following acquisition of an NPA account from a NBFC.
However, its net interest income (NII) rose a healthy 25% to Rs758 crore against Rs605 crore. Advances rose 22% to Rs45,443 crore in Q2, while deposits grew 25% to Rs45,463 crore.
The low-cost CASA deposit base rose to 27.5% on the back of higher deposit rate offering on the savings accounts.
"We hope that the CASA will grow by around 1% every quarter in the near future," Kotak Mahindra Bank Joint Managing Director Dipak Gupta said.
Referring to loan growth, Gupta said farm loans witnessed highest growth in the last quarter.