Kotak mahindra net up 55% on retail lending

Supported by growth in retail and corporate banking, private sector lender Kotak Mahindra Bank today reported a 55 per cent rise in net profit at Rs 195 crore in the second quarter ended September 2010.

Supported by growth in retail and corporate banking, private sector lender Kotak Mahindra Bank on Wednesday reported a 55 per cent rise in net profit at Rs 195 crore in the second quarter ended September 2010.

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Profit from the retail banking segment stood at R88 crore during the quarter against a loss of R6 crore in the same quarter last year. Corporate banking profit grew by 35 per cent to R138 crore.

Net interest income rose 25 per cent during the quarter to R544 crore compared to R437 crore in year-ago period.

Advances grew 35 per cent to R26,500 crore in the July-September quarter from R19,700 crore in the same quarter of the previous fiscal, while deposits were up 50 per cent to R28,300 crore. The bank plans to add around 40-50 branches in the next six months.

The Kotak Mahindra stock outperformed the market over the past one month till October 19, 2010, rising 6.8 per cent, compared to the Sensex’s rise of 2.0 per cent. It outperformed the market in past one quarter, gaining 27.7 per cent, against 11.5 per cent rise in the Sensex.