The Hindu Business Line : Kotak Bank net doubles on higher interest, fee income in Q2

Backed by a higher net interest income and fee-based income, Kotak Mahindra Bank has posted a 116.6 per cent growth in its standalone net profit for the quarter ended September 30, 2007 at Rs 75.38 crore, against Rs 34.80 crore in the same quarter of the previous fiscal.

“This is a reflection of the underlying strength of the Indian economy and that of the financial sector,” said Mr Uday Kotak, Executive Vice-Chairman and Managing Director, Kotak Mahindra Bank.

The net interest income rose 100.47 per cent at Rs 283.4 crore (Rs 141.37 crore). The other income of the bank also increased 96.02 per cent at Rs 122.34 crore (Rs 62.41 crore). “There has been a robust growth in the fee-based income of the bank and this has contributed to the higher net profit. There has also been a good growth in our corporate banking and treasury business,” said Mr Kotak.

The consolidated net profit went up 157.13 per cent at Rs 241.45 crore (Rs 93.9 crore). The net interest margin is at 5.2 per cent (5.1 per cent). The cost of funds stands at 6.5-7 per cent.

The percentage of net non-performing assets to net advances (including NPAs acquired from other banks and NBFCs) increased to 1.85 per cent (0.53 per cent). The bank has acquired stressed assets worth Rs 406 crore (359 crore). The net NPA without the stressed assets stands at 0.4 per cent (0.3 per cent).

The Kotak bank’s stock was up by 5.45 per cent at Rs 1,027.25 on the BSE today.

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