Mumbai, Aug 01: Kotak Mahindra Bank has reported a 65% growth in net profit at Rs 19.3 crore during the first quarter of FY04, compared to Rs 11.7 crore in the previous quarter. This is the first full quarter results of the bank, since its conversion from Kotak Mahindra Finance. Uday Kotak, executive vice-chairman and managing director of Kotak Mahindra Bank, said, “Our transition into a bank has been smooth. While we are making treasury profits, there has been a significant growth in profits from retail lending. We have positioned ourselves as a full financial services group.”

Consolidated profit after tax (net of minority interest) for the Kotak Mahindra group for the quarter was up by 192% at Rs 29 crore, as against Rs 9.9 crore in the corresponding quarter during the previous year. Consolidated total income rose by over 50% at Rs 213.8 crore from Rs 142.7 crore.

The bank’s first quarter profits were boosted by retail lending, where profits were up by 68% to Rs 18.3 crore from Rs 10.9 crore in the previous quarter.
The capital adequacy ratio (CAR) fell to 14.5% from 27.2%. The fall was primarily due to the bank building assets (both lending and investments). Bureau Report