Kotak Mahindra Bank logged a net profit of ₹696 crore for the fourth quarter of FY16.
The private sector bank’s results are not comparable with the year-ago period as it merged ING Vysya Bank with itself last fiscal.
Net interest income (NII) stood at ₹1,857 crore and net interest margin at 4.35 per cent.
Uday Kotak, Executive Vice-Chairman and Managing Director, Kotak Mahindra Bank, said: “We believe that from here we see a potential loan growth in FY17 of 20 per cent per annum.
“We also see moving towards normalisation of our credit costs, against 83 basis points credit costs which we incurred in FY16. We see that number coming down to 45-50 basis points in FY17.”
Advances as on March 31, 2016 were at ₹1,18,665 crore while deposits stood at ₹1,38,643 crore. Current account, savings account (CASA) constituted 38 per cent of these deposits.
Non-performing assetsBad loans as a percentage of the loan book on a gross basis (gross NPA) was 2.36 per cent while net NPA was at 1.06 per cent.
Going a step further, the bank declared its SMA2 outstanding (loans above ₹5 crore that were on the verge of going bad, that is, not paid for over 60 days but yet to complete 90 days overdue, to be classified as an NPA) at ₹153 crore or 0.13 per cent of net advances.