Kotak Mah Bank Q3 beats estimate, profit up 31% to Rs 362cr

Moneycontrol Bureau

Private sector lender Kotak Mahindra Bank's third quarter (October-December, 2012-13) standalone net profit clocked a little more than 31% year-on-year to Rs 362 crore, bolstered by a robust loan growth. Net interest income or the difference between interest earned and paid out, increased 26% to about Rs 820 crore. The quarterly numbers were higher than the analysts' expectation. Analysts on an average were expecting net profit at Rs 307 crore and net interest income at Rs 779 crore for the quarter. The bank expanded its loan book by 26% y-o-y to about Rs 50,250 crore surpassing the industry average of 16-17% credit growth. "All segment of our loan book grew reasonably," said Dipak Gupta, executive director, Kotak Mahindra Bank while addressing reporters here in Mumbai. "It is just that in this quarter, corporate loans have marginally higher than retail loans. Our overall credit growth would in the range of 20% plus for the full year. Retail loans will continue to grow." Kotak Bank managed to improve its asset quality. Gross non-performing asset ratio stood at 1.46% as against 1.61% a quarter back. Net non-performing asset ratio too decreased from 0.75% to 0.64%. However, provisions and contingencies rose marginally to Rs 42 crore compared with Rs 31 crore a year back. The bank had a credit exposure of more than Rs 50 crore to the debt-trapped Deccan Chronicle. The lender may have fully provided for.   "The rise in provisions is due to the expansion of our advances. With an increase in loan book, the requirment of provision on standard assets too goes up," said Jaimin bhatt, CFO, kotak mahindra bank. Capital adequacy ratio was at 15.63% as against 15.40% in the previous quarter. Deposit base grew 34% y-o-y to about Rs 51,500 crore. Savings deposits surged nearly 50% to Rs 6,120 crore. The bank is offering 6% interest on its savings deposit account. The consolidated net profit of the bank rose 25% to Rs 577 crore. The net interest income grew 23% y-o-y to Rs 1,252 crore during the quarter. Kotak Securities, the capital market arm of the group reported a robust growth of 58% y-o-y to Rs 38 crore while its international subsidiaries turned profitable at Rs 5 crore as against a loss of Rs 4 crore a year ago. Kotak Mahindra Prime, engaged in car financing, generated the same profit at Rs 105 crore. Kotak Mahindra Bank shares on Tuesday rose nearly 2% to close the day's trading at Rs 641 on NSE. In last one year, those shares went up 34% as against 33% rise of Bank Nifty, the broader index for banking stocks. saikat.das@network18online.com Also Read
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