Kotak Mahindra Bank’s net dips 26 percent in Q1

However, Kotak Mahindra Bank’s Executive Vice-Chairman and Managing Director Uday Kotak claimed that ING Vysya Bank’s (INGVB) book has turned out to be nearly at par with expectations, and hinted at more setbacks on the asset quality front in the remaining quarters before the bank starts working normally. “Hence, the results for the quarter ended June 30, 2015 are not comparable with that of the corresponding period of the previous year and the immediately preceding quarter”, the Bank said in a statement to the Bombay Stock Exchange. “339 crore towards benefits payable to all employees (pension, gratuity and compensated absences) of the erstwhile ING Vysya”, the bank said.

The lender had taken “some of the tougher calls” on provisioning which will continue for the rest of this fiscal year, billionaire Mr Kotak told a news conference, adding that he saw credit costs coming down to a “normalized” level from next year.

In absolute term, gross NPAs were Rs 2,421.77 crore in June quarter, climbed 124.4 percent over the year-ago period and 95.7 percent over March quarter. Net non-performing assets (NPAs) inched up marginally to 0.93 per cent up from 0.81 per cent in the first quarter of 2014.

Other income or the income the banks earns from fees and commissions decreased 22.9% to Rs1,442.75 crore from Rs1,871.27 crore in 2014. Provisions totalled Rs 305 crore.

Mumbai: Private sector Kotak Mahindra Bank Ltd on Thursday reported a consolidated net profit of Rs516. In the April-June 2014 quarter, the consolidated net profit was at Rs698.

Kotak Mahindra Bank shares closed 1.36 per cent down at Rs 716.15 apiece on the BSE, as against the 0.51 per cent gain in the benchmark Sensex. 07 crore last year following the consolidation of lending operations of Kotak Mahindra Bank and ING Vysya Bank.