The board of Kotak Mahindra Bank, while announcing its financial result on Tuesday, has decided to double the number of shares in circulation through a stock split. Shares of the bank have a face value of Rs 10 each, which will be split into two shares of Rs 5 each, subject to approval of shareholders.
Driven by the relatively low-cost of funds, the bank almost doubled its net profits to Rs 203 crore for the quarter ended March 31, 2010, from Rs 103 crore recorded in the corresponding period of the last fiscal.
With this, the bank concluded 2009-10 fiscal with a net profit of Rs 561 crore, up 103% from Rs 276 crore recorded in the previous fiscal. The bank has maintained its net interest margin (NIM) at 6.3% during the reporting period as against 6.1% in the quarter ending in December 2009. The bank?s total advances grew 26% to Rs 20,775 crore in 2009-10.
?We have seen significant growth in corporate and retail lending, including auto, housing and partly construction. However, we have reduced focus in unsecured retail loans as we learnt lessons from the recession,? said Uday Kotak, vice-chairman & managing director of the bank. Kotak expects a credit growth of 30% in 2010-11 unless there external factors like European crisis worsens. Commenting on bank?s inorganic growth front, he said the bank is ?sniffing opportunities? in this space.
?However, we are looking for logical valuations. We have asset management company, securities firm and banks to explore acquisition opportunities.?