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Thursday, July 30, 2015

Kotak Mahindra Bank Q1 net profit falls 26%

Private sector lender Kotak Mahindra Bank on Thursday reported a 25.8 per cent fall in net profit at Rs 516.57 crore for the first quarter ended June 2015 on account of higher provisioning for bad loans.
The bank had reported a net profit of Rs 696.70 crore in the April-June quarter of last fiscal, it said in a BSE filing.
However, Kotak's total income increased to Rs 6,384.63 crore in the April-June quarter from Rs 5,006.63 crore in the same period of last fiscal, it added.
These are the first quarterly numbers after the amalgamation of ING Vysya Bank with Kotak Mahindra Bank. RBI gave nod for merger between the two banks to create country's fourth-largest private sector lender, effective April 1, 2015.
The gross NPAs as a percentage of total advances rose to 2.04 per cent from 1.56 per cent in the year-ago period. The net NPAs also increased to 0.93 per cent from 0.81 per cent.
Provisions and contingencies of the bank during the quarter increased more than 10-fold to Rs 321.90 crore as against Rs 27.24 crore at the end of first quarter a year ago.
Kotak Mahindra Bank shares closed 1.36 per cent down at Rs 716.15 per unit on the BSE.

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