Kotak Mahindra Bank’s standalone net profit in the first quarter of FY17 rose to ₹742 crore from ₹190 crore in the year-ago quarter with the bank nearly completing its integration of ING Vysya Bank.
Net interest income in Q1 FY17 increased 20 per cent year-on-year (y-o-y) to ₹1,919 cr (₹1,598 cr in Q1 FY16) while net interest margin (NIM ) rose 19 basis points to 4.37 per cent.
On the rationalisation of branches post-integration of ING Vysya Bank, Jaimin Bhatt, CFO, said: “We have identified 70 branches in metro cities for relocation.”
The bank has completed technology integration across all platforms, channels and systems. The people and process integration has also been largely completed as of June.
The bank’s advances grew 17 per cent y-o-y to over ₹1.2-lakh crore, while deposits grew faster at 20 per cent to over ₹1.4 lakh crore. The proportion of current account and savings account (CASA) out of the total deposits was 37.4 per cent.
Bad loans (gross non-performing assets as a per cent of gross advances) stood at 2.50 per cent while net NPA as a per cent of net advances was 1.21 per cent. Restructured loans considered standard stood at ₹160 crore at the end of Q1 FY17 or 0.13 per cent of net advances.
Capital adequacy ratio of the bank according to Basel III norms stood at 16.8 per cent in Q1.
The bank had a network of 1,333 branches and 2,034 ATMs at the end of Q1 FY17.