MUMBAI, April 29(Reuters) – India’s Kotak Mahindra Financial institution (KTKM.NS) on Saturday reported a better-than-expected 26% enhance in internet revenue for the January-March quarter, helped by greater internet curiosity revenue and robust mortgage progress.
The non-public lender’s standalone internet revenue, excluding subsidiaries, rose to 34.96 billion rupees ($427.8 million) within the fourth quarter of the fiscal 12 months from 27.67 billion rupees in the identical interval final 12 months.
The consequence beat analysts’ forecast of 29.13 billion rupees, in accordance with Refinitiv information.
Web curiosity revenue – the distinction between curiosity earned and curiosity expended – elevated 35% to 61.03 billion rupees from 45.21 billion rupees a 12 months in the past. Web curiosity margin grew to five.75% for the reporting quarter from 4.78% final 12 months.
The financial institution’s loans elevated by almost 18% year-on-year, whereas deposits rose by 16.4%, largely led by time period deposits.
However KVS Manian, president for company, institutional and funding banking, instructed reporters that demand for company credit score was sluggish and company loans confronted pricing strain.
Indian banks have continued to report double-digit credit score progress in current months regardless of rate of interest hikes value 250 foundation factors by the Reserve Financial institution of India (RBI) since final Might, in accordance with RBI information.
Lenders have shored up their deposit base amid tightened liquidity circumstances. Nonetheless, deposit progress has trailed credit score progress for many banks.
Because of sturdy credit score progress, giant non-public banks reminiscent of HDFC Financial institution and ICICI Financial institution reported a double-digit revenue progress for the Jan-March quarter.
Kotak Mahindra reported improved asset high quality for the quarter. The ratio of gross non-performing belongings (NPA) was at 1.78% on the finish of March, down from 1.90% on the finish of December, whereas the online NPA ratio was 0.37%, in contrast with 0.43%.
The financial institution’s board additionally really useful a dividend of 1.50 rupees per share.
Kotak Mahindra Financial institution is one in all India’s main non-public sector lenders. As of March 31, the financial institution has a nationwide footprint of 1,780 branches.
Final week, the financial institution’s shareholders appointed Uday Kotak as a non-executive, non-independent director. Kotak’s time period as managing director and chief govt officer ends in December.
The appointment is in accordance with the regulation and in the very best curiosity of stakeholders, chief monetary officer Jaimin Bhatt mentioned.
($1 = 81.7200 Indian rupees)
Reporting by Siddhi Nayak; Modifying by William Mallard
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