Money & Banking

Kotak Mahindra Bank posts 32% growth in net

Our Bureau Mumbai | Updated on January 23, 2011 Published on January 23, 2011

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Higher advances and lower NPAs helped, says CFO



Kotak Mahindra Bank's net profit rose 32 per cent to Rs 188 crore in the third quarter of 2010-11, as against Rs 142 crore in the corresponding year-ago period.

Mr Jaimin Bhatt, Group CFO, said the growth in advances and lower NPAs helped the bank post profits. “Our advances grew by 35 per cent. Asset quality has also improved,” he said.

Bank's advances grew 35 per cent to Rs 29,000 crore.

However, net interest margin fell to 5.4 per cent (6.2 per cent).

“Earlier, we were largely lending in the retail space where margins were high. Now we have shifted focus to the corporate portfolio where yields are not very high,” said Mr Bhatt.

The bank has brought down the share of the retail book in total advances to around 67 per cent from 90 per cent two years back.

Even in the retail portfolio, the bank is focussing more on the mortgage space where returns are low rather than giving personal loans, he added.

The bank's scrip ended at Rs 419.3 on the BSE on Thursday, up 1.5 per cent from the previous close of Rs 413.05.

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Published on January 23, 2011
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