Kotak Mahindra Bank reported a 43% growth in net profit for the quarter ended September. After the company announced its results, joint managing director Dipak Gupta spoke about growth drivers, stable NIMs and the recent issue of fraudulent withdrawals from ATM machines.
Which segments were responsible for driving growth for this year and in this quarter?
If you look at the year, corporate banking has done pretty well. Another segment that is worth mentioning is the small business. If you look at this particular quarter, our agri business has grown relatively, but there has been slow growth in the business banking sector. There have been no fresh slippages this quarter, and the CASA book is growing.
Do you still see risk in the service and metal sectors? Will there be more slippages going forward?
As of now, we are not expecting fresh slippages – whatever had to happen has happened more or less. So there will not be any more significant slippages that we will see. Now, one is basically waiting for growth to take on.
Can you throw some light on NIMs for the quarter?
NIMs were pretty healthy in this quarter and we will see it in the range of 4%-4.5% for the rest of the year. Thanks to the asset mix we have, and especially growth in CASA, we have been drawing in a lot of benefit.
Going forward, which part of the product mix will we see grow more sharply?
Our business is neatly spread across the three main segments we have – corporate, middle SME and consumer. So, it’s roughly a third from each of these areas. And that’s how we will maintain it.
Will resolution of stressed assets pick up?
We hope this, but for resolution to pick up – the overall economy has to be healthier – that hasn’t been happening. The legal system also needs to be stronger, it is still slow. We need to have new tribunals in place and functioning for the recovery to pick up.
What is the status on the debit card fraud and illegal withdrawals?
Our numbers were not as significant as others, as it happened on certain types of cards with low numbers. We saw patterns and discovered the problem pretty early.