Kotak Mahindra Bank today reported 47 per cent rise in standalone net profit to Rs 436 crore in the fourth quarter of last financial year on the back of sound rise in core income.
Net profit of the private sector lender stood at Rs 297 crore during the same period of FY12. Total income increased by 28.67 per cent to Rs 2,572.23 crore in Q4 from Rs 1,999 crore in the year-ago period.
For the whole fiscal (FY13), net profit rose by 25 per cent Rs 1,361 crore.
"In a macroeconomic environment which remains challenging, we have shown considerable rise in our net profit during the last fiscal, keeping reasonable control over our asset quality," Executive Vice-Chairman and Managing Director of Kotak Mahindra Bank, Uday Kotak, told reporters here.
While the net interest income increased by 31 per cent to Rs 903 crore in fourth quarter of FY13, net interest margin (NIM) stood at 4.7 per cent. "NIM is likely to be in the range of 4.5 per cent in the current financial year," Kotak said.
As per the bank, advances grew by 24 per cent to touch Rs 48,469 crore by the end of March 31 and deposits increased by 32 per cent to Rs 51,029 crore.
"We expect advances to grow around 20 per cent and deposits to grow at last fiscal's level," he said.
Kotak said the bank had witnessed significant traction in retail loan book in the last fiscal, especially in small and medium business segment. "We are little cautious in our lending to heavy commercial vehicle segment."
On the asset quality front, while gross NPA improved to 1.55 per cent by the end of March quarter from 1.56 per cent reported a year earlier, net NPA was at 0.64 per cent compared to 0.61 per cent in FY12.
"Despite the challenging environment, we have maintained the asset quality. Also, our restructured book stood at Rs 11 crore by the end of March quarter, which is one of the lowest in the industry," Kotak said.
The private sector lender, which had a capital adequacy ratio of 16.05 by the end of FY13, said it doesn't plan to raise capital in the near future.
On consolidated basis, the bank's net profit rose 28 per cent to Rs 666 crore in Q4. While Kotak Mahindra Prime contributed Rs 119 crore, Kotak Mahindra Old Mutual Life Insurance had a profit