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Kotak Mahindra Q4 Net Profit Grows 30 Per Cent

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Kotak Mahindra Bank Ltd, India's fourth-biggest private sector lender by assets, reported a better-than-expected 29.5 per cent rise in quarterly profit and said it would issue free shares to investors.
 
Standalone net profit rose to 5.27 billion rupees ($83.14 million) for its fiscal fourth quarter to March 31, from 4.07 billion rupees a year earlier. That compared with analysts' expectation of 4.97 billion rupees.
 
The bank will issue one bonus share for every share held, pending approval in the annual shareholders' meeting, it said in a stock exchange filing on Tuesday.
 
The bank this year bought smaller rival ING Vysya Bank in a record Indian deal for the sector. The banks' operations were combined effective April 1.
 
Kotak Bank registered a credit growth of 25 per cent in FY15, which was led by corporate demand that grew 40 per cent, while consumer loans expanded 25 per cent but commercial loans rose a tepid 8 per cent, Chief Financial Officer Jaimin Bhat said.
 
Corporate segment now accounts for 40 per cent of the loan book and the rest is evenly split between the two others, he said.
 
Executive Vice-Chairman and Managing Director Uday Kotak said only tractors and construction equipment sectors witnessed some pressure during the fiscal year gone by and the bank witnessed healthy performance on all other lines.
 
The decision to go slow on the construction equipment three years ago has paid off as the fourth largest private lender has been able to maintain asset quality, he said.
 
Kotak felt the bank is near the bottom in this segment a well as commercial vehicles segment, which had witnessed some issues in the past.
 
Heavy commercial vehicles finacing will see more pick up, which will be followed by the light commercial vehicles, Kotak said.
 
(Agencies)