A recent press report said that Kotak Mahindra Bank has posted a net profit of Rs 249 crore for the quarter ended March 31, 2010, up 23 per cent from Rs 203 crore in the corresponding year-ago period. Reports said that the growth in its profit was due to the higher interest income and lower fall in the non- performing assets such as home loan, personal loan, business loans etc.
Mr. Uday Kotak, Vice-Chairman and Managing Director, of Kotak Mahindra Bank said that the bank has seen a good credit cycle and that the new provisioning was lesser than the recovery. He added saying that the bank had a net write-back of Rs 7 crore in provisions, against a provision of Rs 128 crore last year and recoveries from written of assets was Rs. 10 to 15 crore. The net interest income of the bank has gone up by 18 per cent to Rs 622 crore from Rs 526 crore and the non-interest income was lower at Rs 191 crore from Rs 251 crore.
The bank financed its credit growth by borrowing in foreign currency which was fully hedged and re-financing of its agricultural and rural loans, ahead of the interest rate increase cycle.