Kotak Mahindra net profit rise 12 per cent in first quarter

Kotak Mahindra net profit rise 12 per cent in first quarterPrivate sector bank, Kotak Mahindra has reported an increase of 12 per cent in its net profits to Rs 282 crore during the first quarter of the financial year.

The net profit in the same quarter of the previous year stood at 252 crore. It said that the provisioning towards advances and receivables were at Rs 52 crore during the first quarter till June 2012 compared to Rs 13 crore during the same quarter of the previous year.

The bank said that increased provisioning towards advances and receivables added pressure on its earnings. The Net interest income of the bank, which is the difference between interest earned and interest expended, increased by 27 per cent to Rs 721 crore during the quarter compared to Rs 568 crore in the first quarter of 2011. The bank’s Low cost current and savings bank account (CASA) deposits rose by an impressive 34 per cent to Rs 11,054 crore.

“Within CASA deposits, savings bank deposits jumped 68 per cent aided by the deregulation in SB deposits by the RBI. The NPAs have increased as we don’t believe in restructuring loan accounts.

However, this is a good time to resolve bad loans,” said Mr Dipak Gupta, Joint Managing Director.

The bank’s Net interest margins (NIMs) were lower at 4.7 per cent in the quarter compared to 5 per cent as on June 30, 2011.




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