`Rise due to better margins'
Mumbai, July 20
Kotak Mahindra Bank's net profit increased by 21 per cent to Rs 23.91 crore for the quarter ended June 30 against Rs 19.68 crore in the year ago quarter, on a standalone basis. The rise in profits is due to better margins, Mr Uday Kotak, Executive Vice-Chairman and MD, Kotak Mahindra Bank, said
Total income increased to Rs 306.52 crore (Rs 176.74 crore). Net interest income (NII) increased by 61 per cent to Rs 111.41 crore (Rs. 69.30 crore). Other income increased by 78 per cent to reach Rs 64.29 crore (Rs 36.03 crore). "Other income comprised fees, income from securities, investment banking, distribution of third party products and insurance premium," Mr Kotak said.
Capital Adequacy Ratio was 14.66 per cent (12.52 per cent). The proportion of net non-performing assets to total assets was 0.27 per cent. Deposits increased by 57 per cent to Rs 7,648.93 crore (Rs. 4,881.86 crore). Advances grew by 67 per cent to Rs 7,251.53 crore.
Nod for merger
The bank's board has approved the merger of the trading and principal (including primary dealership) division of Kotak Mahindra Capital Company Ltd (KMCC) with the bank. The bank also proposes to invest additional capital in five indirect subsidiaries so as to take a 51 per cent stake in these companies and make them direct subsidiaries, according to a press release. Shares of Kotak Mahindra Bank ended at Rs 253.35 against the previous close of Rs 244.95 on the BSE on Thursday.