Kotak Mahindra Bank posts 16 pc rise in Q2 profit
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Kotak Mahindra Bank today reported a 16 per cent rise in consolidated net at Rs 502 crore in the second quarter ended September 30 on the back of higher core income from the banking arm.
The private sector bank's total income rose 47.24 per cent to Rs 4,035.75 crore compared to Rs 2,740.84 crore in the same period last fiscal.
"Out of the consolidated profit of Rs 502 crore, a major chunk of Rs 280 crore was contributed by our banking operation, while the rest came from other entities like Kotak Mahindra Prime, Kotak Securities and Kotak Mahindra Old Mutual Life Insurance, among others," Group Chief Financial Officer Jaimin Bhatt told reporters here, while announcing the Q2 earnings.
Kotak Mahindra Prime posted a net profit of Rs 114 crore, while in case of Kotak Securities it was Rs 40 crore. Kotak Mahindra Old Mutual contributed Rs 47 crore and profit of Kotak Mahindra Investments stood at Rs 16 crore.
Bhatt said the net interest margin (NIM) came down to 4.7 per cent in the July-September period compared to 4.8 per cent a year earlier.
He said consolidated advances rose 21 per cent to Rs 61,255 crore, helping the balance-sheet cross Rs 1 lakh crore- mark for the first time.
On the asset quality front, gross NPA improved a tad to 1.35 per cent against 1.38 per cent a year ago, while net NPA rose to 0.63 per cent from 0.46 per cent.
On a standalone basis, Kotak Mahindra Bank posted a 7.69 per cent rise in net profit at Rs 280 crore in the reporting quarter, as it had to make a provision of Rs 42 crore, following acquisition of an NPA account from a NBFC.
However, its net interest income (NII) rose a healthy 25 per cent to Rs 758 crore against 605 crore.