Private sector lender Kotak Mahindra Bank reported a 32 per cent increase in its standalone net profit to Rs. 696 crore on the back of healthy growth in margins.
The lender posted a net interest income of Rs. 1,857 crore, up 65 per cent on year as net interest margin improved to 4.35 per cent from 4.3 per cent during the period under review.
The other income was Rs. 681.9 crore, as against Rs. 722.2 crore in the preceding December quarter.
ADVERTISEMENT
Kotak Mahindra Bank has merged with ING Vysya Bank in a Rs. 15,000 crore deal, which came into effect from April 1.
“The year 2015-2016 has been one of transition and consolidation post our merger. The process of integration is in its last leg,” said Uday Kotak, executive vice-chairman & Managing Director of the bank.
For the entire fiscal, its first as a larger merged entity, the bank posted a net profit of Rs. 3,458.9 crore, up from Rs. 3,045.5 crore, a year ago.
ADVERTISEMENT
Mr. Kotak said the process of integration of businesses will get complete by June 2016.
The bank is targeting a credit growth of up to 20 per cent in FY17, and will look at both the retail and wholesale segments for growth, he said.
While bad loans are under control, with gross non-performing asset ratio at 2.4 per cent, the bank said recovery process for stressed assets from ING Vysya was very tough, hurt by multiple factors, including sluggish economic growth and the legal system.
Net interest margin improved to 4.35% from 4.3% during the same period