Kotak Mahindra Bank recorded a 16 per cent growth in its consolidated net profit at Rs 502 crore for the second quarter which ended on September 30. Strong growth in loan book tempered net profit for Q2.
The private sector lender's standalone net profit recorded 8 per cent growth to Rs 280 crore for the second quarter from Rs 260 crore in the same period a year ago.
There was also a growth of 25 per cent in the Net Interest Income (NII) at Rs 758 crore against Rs 605 crore for the same period a year ago. Net Interest Income is the difference between the interest earned and interest expended.
Interest expended also saw a growth of 36 per cent to Rs 1166 crore against Rs 859 crore last year. Provisions towards bad loans also increased from Rs 16 crore to Rs 78 crore.
Mr. Dipak Gupta, Joint Managing Director of Kotak Mahindra bank said, "Entire amount of the purchase (net of subsequent recovery) amounting to Rs 42 crore has been treated as NPA and fully provided for".
Net Interest Margin remained stable at 4.6 per cent. The Year-on year advances increased 22 per cent to Rs 45,443 crore and deposits also rose 25 per cent to Rs 45,463 crore as on September 30, 2012.