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Kotak Mahindra Bank posts 28.12% increase in Q2 standalone net

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Mumbai | Published: October 31, 2015 12:11:55 AM

Kotak Mahindra Bank on Friday reported a 28.12% jump in standalone second quarter net profit at Rs 569.50 crore against the same period last year.

Kotak Mahindra Bank on Friday reported a 28.12% jump in standalone second quarter net profit at Rs 569.50 crore against the same period last year.

The bank said in a press release that having received approval from the Reserve Bank of India for the merger of ING Vysya Bank with effect from April 1, 2015, the results for the quarter-and-half year ended September 30, 2015 are for the merged entity and not comparable with previous periods. On a sequential basis, net profits saw a huge jump by 200%, led by a fall in provision. Provisions fell 42.22% to Rs 176.40 crore compared to the previous quarter, while on a y-o-y basis, it saw a sharp rise by 228.79%.

Jaimin Bhatt , group chief financial officer at Kotak Mahindra Bank, said that, in the first quarter, the lender had taken a hit with respect to the retiral benefits of ING Vysya employees, which was in excess of Rs 300 crore.

Net interest income — the difference between interest earned and interest expended — jumped 61.58% to Rs 1,678.74 crore compared to the same period last year, while on a sequential basis, it saw a growth of 5.04%. Net interest margin for Q2FY16 stood at 4.3%.

Gross non-performing assets as a percentage of gross advances saw a jump of 46 basis points in the quarter ended September compared to the second quarter of last fiscal year. On a sequential basis though, gross NPAs rose just four basis points. Net NPAs on a y-o-y basis rose five basis points while on a sequential basis, they saw a marginal rise by just a basis point.

Operating profit rose 42.41% to Rs 1,044.76 crore compared to the same period last year, while it saw a growth of 75% compared to the previous quarter. Advances grew to Rs 1.11 lakh crore as on September 30, 2015, from Rs 60,947.74 crore a year ago while deposits stood at R1.23 lakh crore compared to Rs 68,102.59 crore in the same period last year. Capital adequacy ratio of the bank, including unaudited profits as per Basel III, as on September 30, 2015 stood at 16.1% while tier-I ratio stood at 14.9%.

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