Our NIMs have dropped largely on account of increase in cost of funds rather a drop in yields, said Jaimin Bhatt, CFO, Kotak Mahindra Bank. Going forward, we expect our margins to remain at 5% levels, he said.
Shares of Kotak Mahindra Bank on Thursday closed at R475.9, down 2.98%, underperforming the benchmark Sensex, which fell 0.36%.
Consolidated net interest income (NII) during the quarter rose 27% to R921 crore from R725 crore in the corresponding quarter a year ago.
Consolidated advances were up 36% to R44,699 crore as on June 30 from R32,978 crore a year earlier. The bank saw good loan growth in commercial and wholesale banking segments, while growth was sluggish in consumer segment. The bank also took a a hit on the treasury portfolio on account of higher interest rates. The bank is expecting to clock a better than industry growth rate of 25-30% in advances in the current year.
Banks Casa ratio stood at 27% down from 28% in the previous year. On a standalone basis, it posted a net profit growth of 35% to R252 crore.