Kotak Mahindra Bank Q3 Profit Goes Up

Kotak Mahindra Bank, provider of wide ranging financial services in India, reported a higher net profit, both on consolidated and stand-alone basis, mainly driven by increased net interest and non-interest income.

Consolidated Results

The Mumbai-based bank's third-quarter consolidated net profit, after minority interest and share in profit of associates, was Rs.577.21 crore, higher by 25 percent than the Rs.462.63 crore in the third-quarter of last year. On a per share basis, earnings for the quarter grew by 24 percent to Rs.7.72 from the Rs.6.23 in the corresponding quarter last year.

Net interest income during the quarter rose by 23 percent to Rs.1,231.54 crore from Rs.999.70 crore for the quarter ended December 31, 2011. Net interest margin stood at 4.6 percent, compared with 4.7 percent in Q3FY12. Non-interest income was Rs.1,345.65 crore, higher by 49 percent than the Rs.900.52 crore reported in the same period last year.

The bank's total income for the quarter stood at Rs.4,157.12 crore, compared with Rs.3,123.31 crore in the year-ago quarter, reflecting a 33 percent growth.

Operating profit, before provisions and contingencies, for the quarter rose by 24 percent to Rs.893.60 crore from the Rs.719.78 crore in the prior-year quarter.

On consolidated basis, gross advances stood at Rs.67,201 crore, up by 27 percent from Rs.52,847 crore in the preceding year.

Consolidated net worth of the bank as at the end of December, 2012 was Rs.14,568 crore, compared with Rs.12,416 crore as on December 31 last year.

Gross non-performing assets as a proportion of gross advances, excluding NPAs acquired from other banks/NBFCs, were 1.02 percent, up from 0.95 percent as on December 31, 2011, while net non-performing assets as a proportion of net advances, excluding NPAs acquired from other banks/NBFCs, increased to 0.53 percent from the 0.41 percent in the prior-year.

Stand-alone Results

The bank's third-quarter stand-alone net profit was Rs.361.68 crore or Rs.4.84 per share, compared with Rs.276.08 crore or Rs.3.72 per share in the third-quarter of last year. Net profit and earnings per shares grew by 31 and 30 percent respectively.

Net interest income during the quarter increased by 26 percent to Rs.822.85 crore from the Rs.651.45 crore in the corresponding quarter last year. Non-interest income for the quarter rose by eight percent to Rs.304.86 crore from the Rs.281.96 crore reported in the same period last year.

Total income for the quarter stood at Rs.2,399.44 crore, higher by 25 percent than the Rs.1,922.94 crore in the year-ago quarter.

On a stand-alone basis, the bank's total deposits as at the end of December, 2012, stood at Rs.51,524 crore, up by 34 percent from the Rs.38,385 crore on December 31, 2011, while total advances increased by 26 percent to Rs.50,245 crore from the Rs.39,772 crore a year-ago.

As on December 31, the bank's capital adequacy ratio as per Base l-II was 15.63 percent, compared to 16.87 percent last year.

At the BSE, Kotak Mahindra shares are currently trading at Rs.639.15, up Rs.10.10 or 1.61 percent on a volume of around 753,000 shares.

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by RTT Staff Writer

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