Kotak Mahindra Bank quarterly profit dives 7 per cent
1 May 2014 11:23 PM GMT
Private sector lender Kotak Mahindra Bank on Wednesday reported a 7 per cent drop in standalone net profit to Rs 407.2 crore in the March quarter on mark-to-market and treasury losses along with higher tax outgo and bad loans. For the full financial year, the bank’s net income increased 10 per cent to Rs 1,503 crore.
‘We took an MTM (mark to market) hit of Rs 43 crore in the quarter. Also, we have been reasonably conservative in provisions for existing loans. Last year for the same quarter we had very good treasury performance and hence the base was higher. If you take the implications of all these three, it is an accounting for the difference,’ Kotak Mahindra Bank Executive Vice-Chairman and Managing Director Uday Kotak said, adding that higher taxes too dragged profit down.
However, provision was down to Rs 6.19 crore compared with Rs 37.43 crore in the year-ago quarter.
‘We took an MTM (mark to market) hit of Rs 43 crore in the quarter. Also, we have been reasonably conservative in provisions for existing loans. Last year for the same quarter we had very good treasury performance and hence the base was higher. If you take the implications of all these three, it is an accounting for the difference,’ Kotak Mahindra Bank Executive Vice-Chairman and Managing Director Uday Kotak said, adding that higher taxes too dragged profit down.
However, provision was down to Rs 6.19 crore compared with Rs 37.43 crore in the year-ago quarter.
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