Kotak Bank Q3 net falls 6% as loan growth slows

Kotak Mahindra Bank saw its net profit drop 6 per cent to Rs 340 crore in the October-December quarter of this fiscal due to higher provisions and slower loan growth.

“We have cautiously slowed our commercial vehicle and commercial equipment (CVCE) segment due to stress in asset quality. Without considering CECV, our loan growth was at 12 per cent year-on-year,” said Dipak Gupta, Joint Managing Director of the bank.

CV segment hit The mid-size private sector bank’s CV segment witnessed de-growth of 26 per cent. Gupta said the CV segment is seeing signs of stabilising, though there is no incremental business.

The retail and corporate books grew 6 per cent and 5 per cent, respectively. On the other hand, agriculture saw a healthy growth of 23 per cent.

‘Other income’ was marginally down at Rs 300 crore (Rs 305 crore).

Bad loans or gross non-performing assets (NPAs) worsened to 2.01 per cent of total loans as on December 31, 2013, from 1.46 per cent in December 31, 2012. The bank’s provisions (including towards bad loans) increased to Rs 70 crore as against Rs 42 crore in the corresponding quarter last year.

Also, it restructured assets worth Rs 42 crore (Rs 7 crore in Q3 FY13) during the quarter.

Shares of Kotak Bank ended at Rs 706.10 per share, 3 per cent lower than its previous close on the BSE.

beena.parmar@thehindu.co.in