Kotak Mah Bank Q1 PAT up 6.5% at Rs 443 cr, NPAs rise

Consolidated net profit of the bank rose by 6.5% year-on-year to Rs 443 crore in the first quarter of FY13. Net interest income went up by 19.63% to Rs 1,100.6 crore during the quarter.

Analysts on an average had expected net profit of Rs 481 crore and Rs 1,067 crore in the April-June quarter.

However, consolidated net interest margin (NIM) declined further to 4.7% in the quarter as against 5% in a year ago period, though it was on expected lines. Analysts had expected in the range of 4.5%-4.7%.

NIM has been steadily declined for Kotak Mahindra Bank due to rising credit costs. In the financial year 2009-10, NIM was at 5.8%, in FY11 at 5.2% and FY12 at 4.8%. In the first quarter of previous financial year 2011-12, net interest margin was at 5%.

Consolidated gross non-performing assets (NPAs) increased at 1.34% during the quarter as against 1.31% in previous quarter and net NPAs too moved up at 0.66% versus 0.51% QoQ.

Advances grew by 28% to Rs 57,049 crore in the April-June quarter and Capital adequacy ratio stood at 17.5% in the same quarter.

At 12:21 hours IST, the share was trading at Rs 584.90, down 1.56% amid large volumes.