Kotak Mahindra Bank reported a 19 per cent increase in net profit at Rs 297 crore in the January-March 2012 quarter compared with Rs 249 crore in the year-ago period.
Mr Uday Kotak, Executive Vice-Chairman and Managing Director, attributed the profitability to “significant growth in advances even as the quality of assets was kept at cutting edge.”
In the full year ended March 31, 2012, the private sector bank reported a 33 per cent increase in net profit at Rs 1,085 crore (Rs 818 crore in FY11).
The bank's board recommended a dividend of Re 0.60 per share of Rs 5 face value as against the previous year's Re 0.50.
Year-on-year, loans grew by 33 per cent from Rs 29,329 crore as at March-end 2011 to Rs 39,079 crore as at March-end 2012. Deposits increased by 32 per cent to Rs 38,537 crore (Rs 29,261 crore as at March-end 2012).
“We expect a loan growth of 25-30 per cent in FY13. Deposit growth will be about 10-20 per cent higher than the loan growth,” said Mr Kotak. The loan growth will be mainly on the back of collateralised lending, he added.
Promoter's shareholding
Promoter's holding in the bank has come down from 65 per cent in 2003 (when the bank was set up) to 45.32 per cent as at March-end 2012.
Mr Kotak said the bank was in dialogue with the Reserve Bank of India to bring down the promoter shareholding in a non-disruptive manner so as to broad-base shareholding in the bank.
Capital markets consolidation
Pointing out that the average daily traded volumes in the cash segment in the stock market has come down by 30 per cent from Rs 20,000 crore in 2008 to Rs 14,000 crore in 2012, Mr Kotak said this will trigger consolidation among players in the capital market.
He observed that the falling volumes in the cash segment of the equities market will trigger ‘Mergers and Mortality' in the stock market.
Mr Kotak said Kotak Securities, a subsidiary of Kotak Bank, was examining a few proposals for taking over brokerage firms.
Shares of Kotak Mahindra Bank closed 4 per cent lower at Rs 554.60 per share on the BSE as against the previous close of Rs 577.75.