Kotak Mahindra Q1 net profit up 27% at Rs328 cr

Kotak Mahindra Q1 net profit up 27% at Rs328 cr

Mumbai: Buoyed by a healthy growth in its net interest income, rivate sector Kotak Mahindra Bank clocked a 27% jump in its net profit during the June quarter at Rs328 crore, against Rs257 crore in the same period of the previous fiscal.

The bank, which saw its advances expanding by an impressive 42% during the quarter to around Rs33,000 crore, aims for a loan growth of 25-30% for the full fiscal year on the back of rising demand for retail and corporate loans, Kotak Mahindra Bank executive director Dipak Gupta told reporters.

The Reserve Bank has forecast 20% credit growth for banks in FY11 and many of the banks have already seen a pick-up in their advances in recent months, in line with the economic recovery.

According to Gupta, the interest rate movement in the system would depend on cues from the Reserve Bank at its forthcoming quarterly policy review.

Given the inflationary pressures, the apex bank is widely expected to hike its overnight lending and borrowing rates (repo and reverse repo) by 0.25% on 27 July.

The total income of Kotak, however, dipped to Rs2,326.51 crore for the June quarter, from Rs2,338.19 crore in the corresponding period a year ago.

Total deposits of the bank, as on 30 June, were up 38% to Rs24,058 crore, with current and savings account deposits (CASA) comprising 28% of the deposits.