Kotak Mahindra Bank net up 32% at Rs 188 cr

“We have seen the biggest growth in our advances in this quarter and the quality of assets has also improved. These factors have contributed to the rise in profitability,” said Jaimin Bhatt, CFO, Kotak Mahindra Bank. The bank’s net interest income was up 17% to Rs 571 crore for the quarter ended December 2010 from Rs 487 crore in the previous quarter. Its net interest income has dipped marginally to 5.4% from 5.6%.

“The net interest income has been under pressure as the cost of funds is increasing and the bank is expanding its corporate book and mortgages business which are low yielding loans,” added Bhatt. The bank’s advances book has grown by 35% to Rs 28,900 crore as on December 31, 2010, from Rs 21,400 crore at the end of December 2009. Its mortgages book has grown to Rs 6626.1 crore at the end of December 2010 as against Rs 4020 crore in the corresponding period last year. Loans to corporates have also risen to Rs10,407 crore as against Rs 8,476.4 crore.

The bank’s total deposit base was up 28% at Rs 28,288 crore at the end of December 2010 as against Rs 22,186 crore in the corresponding period last year. The current and saving accounts increased by 24.67% to Rs7,860.1 crore from Rs6304.3 crore in the corresponding period last year.