Kotak Bank executive vice-chairman and managing director Uday Kotak said that the bank would be looking at over 30% growth in advances this fiscal, highly above the industry average, but below this year’s 39%, adding that the bank would hike its lending rate after the next week’s asset liability committee (Alco) meeting
Mumbai: Private sector Kotak Mahindra Bank on Thursday reported a 23% spike in its consolidated net profit at Rs249 crore in the quarter to March against Rs203 crore in the corresponding previous period, driven by robust performance of its NBFC arm and the insurance venture, reports PTI.
However, on a standalone basis, the net stood Rs99 crore in the quarter against Rs52 crore in the year-ago period, a growth of 46.5%, Kotak Bank executive vice-chairman and managing director Uday Kotak said yesterday.
“Our non-banking finance company (NBFC) arm, Kotak Mahindra Prime, doubled its profit this year driven by robust auto financing, while our insurance arm Kotak Life, reported Rs101 crore in profits during the year, which could offset the poor performance of the stock broking and investment banking arms,” Mr Kotak said.
Mr Kotak said that the bank would be looking at over 30% growth in advances this fiscal, highly above the industry average, but below this year’s 39%.
He said the bank would hike its lending rate after the next week’s asset liability committee (Alco) meeting and ruled out further hike in deposit rates saying it has already peaked.
The bank could maintain robust growth despite a full 70% provision coverage as it could marginally improve upon net interest margin at 5.5% during the quarter, chief financial officer Jaimin Bhat said.
For the whole year, however, the bank saw its margins depleting by a full 50 basis points to 5.6% from 6.1% in FY09-10, he added. For the full fiscal, standalone net rose 46% to Rs 818 crore, while consolidated net rose 20% to Rs 1,567 crore, Mr Bhat said.
While consolidated advances grew 39% to Rs41,242 crore, consolidated asset base rose to Rs47,900 crore, and networth to Rs10,963 crore.
The consolidated Tier I capital adequacy ratio of the bank stood at 18.1%, Mr Bhat said.
Consolidated provision stood at Rs91 crore in the March quarter, bringing its net NPA further down to 0.59% each for the reporting quarter as well as for the full fiscal, down from 1.48% each.
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