Kotak Mahindra Bank Q1 net up 43% at Rs 403 cr on core income rise

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Private sector lender Kotak Mahindra Bank today reported a 43 per cent rise in its standalone net profit at Rs 403 crore in the first quarter of current financial year, on the back of a sound rise in core income and credit growth.

Net profit of the bank stood at Rs 282.45 crore in the same period last fiscal.

The bank's total income grew by 28.94 per cent to Rs 2,652.40 crore during this period.

"During the quarter, the bank had seen sound growth in credit and deposit. Our margins also remained steady," Group Chief Financial Officer Jaimin Bhatt said here.

While net interest income (NII) of the bank rose by 27 per cent to Rs 917 crore, net interest margin improved to 4.8 per cent in the January-March period from 4.7 per cent in the corresponding period of previous financial year.

On the impact of recent RBI measures to squeeze out liquidity in the system to stabilise rupee, Joint Managing Director of the bank Dipak Gupta said it would not impact the net interest margin (NIM) as the bank would pass it to the end consumers.

"We hope to maintain NIM at the current level going ahead," Gupta added.

The bank also said it is not facing any liquidity issues due to the RBI measures.

Its loan book grew by 19 per cent to Rs 50,539 crore

during the first quarter and deposits rose by 26 per cent to Rs 52,454 crore during this period.

"The loan growth for the bank may moderate to 15 per cent for the whole fiscal due to recent slowdown in the economy,"

Gupta said adding that the bank is consciously going slow in lending to commercial vehicle and construction equipment segments.

The bank's scrip gained 0.05 per cent to close at Rs 710.60 at the BSE, against the 0.90 per cent gain in the 30-share benchmark.

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