Kotak Mahindra Bank acquires Barclays India's SME lending business
Kotak's business banking portfolio primarily includes SME lending, apart from small and medium companies, he said, adding that the reason for buying out an SME loan book comes from our good experience with small companies on the asset quality side.
When asked whether the deal also involves human assets from Barclays, Parambi said it involves only the loan book as Kotak's existing staff can handle the additional portfolio.
A Barclays spokesperson also did not comment on the status of the staff of the divested business.
In the three months to December, Kotak Bank reported a 25 per cent rise in its net profit to Rs 577.2 crore. Total income of the bank during quarter stood rose to Rs 4,157.12 crore from Rs 3,123.31 crore in the previous fiscal. Income from other sources increased to Rs 500.14 crore from Rs 490.18 crore over the same period previous fiscal.
The bank's net interest margin, a key gauge of profitability, however, declined slightly to 4.6 per cent in the third quarter from 4.7 per cent a year ago while bad loans rose to 0.53 per cent from 0.41 per cent a year earlier.
Net NPAs stood at Rs 364.80 crore from Rs 246.53 crore a year ago.
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