Private sector lender Kotak Mahindra Bank on Thursday reported a 23 per cent spike in its consolidated net profit at Rs 249 crore in the quarter to March, driven by robust performance of its NBFC arm and the insurance venture.
However, on a standalone basis, the net stood Rs 99 crore in the quarter against Rs 52 crore in the year-ago period, a growth of 46.5 per cent, bank executive vice-chairman and managing director Uday Kotak said.
For the March quarter of FY10, the consolidated net income of the bank stood at Rs 203 crore.
"Our NBFC arm, Kotak Mahindra Prime, doubled its profit this year driven by robust auto financing, while our insurance arm Kotak Life, reported Rs 101 crore in profits during the year, which could offset the poor performance of the stock broking and investment banking arms," Kotak said.
Kotak said, the bank would be looking at over 30 per cent growth in advances this fiscal, highly above the industry average, but below this year's 39 per cent.
He said the bank would hike lending rate after the next week's asset liability committee (Alco) meeting and ruled out further hike in deposit rates saying it has already peaked.
The bank could maintain robust growth despite a full 70 per cent provision coverage as it could marginally improve upon net interest margin at 5.5 per cent during the quarter, chief financial officer Jaimin Bhat said.
For the whole year, however, the bank saw its margins depleting by a full 50 basis points to 5.6 per cent from 6.1 per cent in FY10, he added. For the full fiscal, standalone net rose 46 per cent to Rs 818 crore, while consolidated net rose 20 per cent to Rs 1,567 crore, Bhat said.
While consolidated advances grew 39 per cent to Rs 41,242 crore, consolidated asset base rose to Rs 47,900 crore, and networth to 10,963 crore.
The consolidated Tier I capital adequacy ratio of the bank stood at 18.1 per cent, Bhat said.
Consolidated provision stood at Rs 91 crore in the March quarter, bringing its net NPA further down to 0.59 per cent each for the reporting quarter as well as for the full fiscal, down from 1.48 per cent each.