Kotak Mahindra net profit down 26% to Rs 517 crore

Private sector lender Kotak Mahindra Bank posted a 26% drop in its consolidated net profit for the first quarter ended June 30, 2015. The bank posted net profit of Rs 516.57 crore compared to Rs 698.31 crore in same quarter previous fiscal.

The bank witnessed higher provisioning towards non-performing assets, which came mainly from the portfolio of ING Vysya Bank which was merged with Kotak Mahindra on April 1, 2015.

Consolidated net interest income, the difference between interest earned and interest expended, grew by 43.2% to Rs 2163.49 crore in Q1. The gross non-performing assets (NPA) as percentage of gross advances stood at 2.04% in Q1 compared to 1.56% recorded both in the previous quarter and the same period of the previous year . Net NPA stood at 0.93% compared to 0.81%, year ago. Net Interest Margin (NIM) for Q1FY16 stood at 4.18%.

The CASA ratio of the bank stood at 34% and while capital adequacy ratio including unaudited profits as per Basel III as on June 30, 2015 is 16.5% with Tier I ratio is 15.3%.

Uday Kotak, Executive Vice Chairman & Managing Director, Kotak Mahindra Bank said, “We have taken significant provisioning costs in the first quarter of the combined bank post-merger. Going forward, we are excited with the opportunities and synergies that this merger brings and are confident that it will lead us on a new trajectory of excellence and leadership.”

Kotak Mahindra Group