Kotak Mahindra Bank fourth-quarter profit rises 15 percent
Kotak Mahindra Bank Ltd, India's fifth-biggest private sector bank by assets, on Monday reported a 15 percent rise in fourth-quarter net profit, boosted by higher interest and fee incomes.
Published: 30th April 2018 02:31 PM | Last Updated: 01st May 2018 03:31 AM | A+A A-
Image used for representational purpose only. (File photo | Reuters)
MUMBAI: Higher net interest income and other incomes bumped up Kotak Mahindra Bank Ltd’s net profit by 15.11 per cent Rs Rs 1,124 crore for the March 2018 quarter, as against Rs 976 crore during the same period a year ago.Considering the recovery in macro economy and rising demand for credit from all segments including corporate and retail borrowers, Uday Kotak, MD & CEO of Kotak Bank, said the private lender was anticipating a 20 per cent growth in its overall loan book this fiscal, which is lower than the 25 per cent achieved the previous fiscal. “We also expect that provisions will turn down as we go,” he said, adding that asset quality improved marginally during the March quarter.
For the entire fiscal FY18, consolidated net profit increased by 26 per cent at Rs 6,201 crore as against Rs 4,940 crore in FY17.During the quarter under review, provisions and contingencies shot up 15 per cent to Rs 307 crore from Rs 267 crore a year ago. Sequentially, they added 44.24 per cent from Rs 213 crore. According to Kotak, employee costs were affected due to a one-time hit of Rs 82 crore on account of a change in gratuity plan.
Net interest margin stood at 4.35 per cent, which is probably the highest in the sector, while net interest income, or the bank’s core income, increased 19.4 per cent to Rs 2,580 crore compared to Rs 2,161 crore last year. Other income stood at Rs 1,151 crore, up 15 per cent from Rs 1,003 crore.
Gross NPAs stood at 2.2 per cent, as a percentage of total loans, as against 2.31 per cent in the previous quarter and 2.6 per cent in the year-ago quarter, while net NPAs, as a percentage of advances, are now below one per cent at 0.98 per cent compared to 1.09 per cent in the previous quarter and 1.26 per cent in the same quarter last year.
The bank’s CASA ratio stood at 51 per cent, up from 44 per cent in the previous quarter, while advances during the quarter rose 25 per cent from a year ago to Rs 1.7 lakh crore, while deposits gained 22.4 per cent to Rs 1.93 lakh crore.Uday Kotak has been re-designated as MD & CEO of the bank from May 1, while Shankar Acharya, part-time chairman who will retire in July, will be replaced by non-executive independent director Prakash Apte.
