Kotak Mahindra Bank, which recorded a net profit of Rs 69 crore for the fourth quarter of FY08, made a provision of Rs 86 crore towards mark-to-market (MTM) losses on derivative trading.
Also, the bank?s customers have negative MTM exposures of Rs 612 crore in forex derivatives transactions. The bank?s SME clients, however, have no exposure in forex derivative transactions. ?Our bank does not carry any principal forex derivatives position in its own proprietary account,?? said Uday Kotak, vice-chairman and managing director, Kotak Mahindra Bank.
However, a Kotak Mahindra spokesperson did not divulge details of the companies that may have dragged the bank to the court on forex derivative transactions. ?It?s not our bank?s policy to comment on the sub-judice matter,? the spokesperson said.
The bank?s standalone net profit rose by 86% to Rs 69 crore in Q4 against Rs 37 crore a year ago. The bank?s total Q4 income on a standalone basis rose by 54% to Rs 803 crore on year-on-year. The net NPA of the bank increased from 0.17% in FY07 to 0.33% in FY08. The bank?s net interest margin (NIM) for FY08 was 5.6%, and as on March 31, 2008, the current & savings account ratio was 27% and the capital adequacy ratio was 18.7%. For Q4 FY08, the bank?s consolidated net profit increased by 41% to Rs 240 crore and fee income by 37% to Rs 40 crore.
For FY08, the bank?s consolidated net profit climbed up by 84% to Rs 991 crore, the fee income by 59% to Rs 1,053 crore and advances by 41% to Rs 21,985 crore. The EPS rose by 77% to Rs 29 in the last fiscal. The board declared a dividend of 7.5% for the year 2007-08.
Kotak stated that although the bank proposes to open 100 branches across India in the current fiscal, it had no plans to raise capital in the near future.
According to Kotak, the inflation is expected to stick around at current level for next three to four weeks. ?Inflation levels could alter and moderate in the last week of June. However, one has to keep in mind that the current inflation level in India is without taking the pass-through effect of rising crude oil prices in the international market,? he added.