India’s fourth biggest bank by market value, Kotak Mahindra Bank Ltd, said second quarter profit more than doubled as it earned higher income from brokerage trades, fees and commissions.
Net profit rose to Rs241 crore in the three months ended September, compared with Rs93.9 crore, the Mumbai-based bank said in a statement to the Bombay Stock Exchange (BSE).
The bank’s total income doubled to Rs1,812 crore from Rs903 crore during the second quarter. Non-interest income also doubled to Rs973 crore from Rs470 crore.
Kotak Mahindra Bank benefited as soaring economic growth prompted companies to seek financial services and borrow more to grow or acquire rivals, and as individuals bought and sold more shares, mutual funds and insurances policies.
The country’s $906 billion (Rs35.8 trillion) economy is estimated to grow 8.5% in the year to March, following from an average 8.6% growth over the past four years.
ICICI Bank Ltd and HDFC Bank Ltd, the two biggest in the private sector, posted 33% and 40% higher profit, respectively, in the second quarter.
“Indian financial sector is going through an enormous wave of growth opportunities like never before in the history of independent India,” Uday Kotak, managing director of the bank said. “This is benefiting the entire financial system.”
Kotak Mahindra Bank, which started as a finance company in 1985 and got a banking licence in 2003, has securities trading, asset management, insurance and investment banking units.
The bank ranked No. 1 as an arranger of share sales by Indian companies this year.
“We’ve built an integrated consolidated financial institution which is working to our advantage,” said Kotak. “We are able to reach lot more customers and also find opportunities in the financial sector in an integrated manner.”
The bank’s shares on Friday rose Rs53.05 or 5.45% to Rs1,027.25 on BSE.