Private banks outsmart PSBs in quarter show

MUMBAI: New generation private banks have done better than smaller state-owned banks, as they do not face any restrictions on raising capital. Several new generation private banks have raised capital in the second quarter.

After the high growth in net profits announced by ICICI Bank, HDFC Bank and Axis Bank, it is the turn of Kotak Mahindra Bank to post a 117% jump in net profit on Friday.

Kotak Mahindra Bank

Kotak Bank has reported a net profit of Rs 75.4 crore for the quarter ended September 30, 2007, from Rs 34.8 crore for the corresponding quarter of last year. The jump in profit was propelled by a growth in interest income and fee-based income.

The bank has raised Rs 1,620 crore $410 million) this month through a qualified institutional placement (QIP). Investors included SBI, Credit Agricole, Soros, ING and the DE Shaw Group, said Kotak Mahindra Bank vice-chairman and MD Uday Kotak.

On a consolidated basis, including the life insurance and investment banking operations, the bank recorded a growth of 150% to Rs 241.4 crore for the second quarter, from Rs 93.9 crore as reported past year.

Andhra Bank

Andhra Bank has reported 11.2% rise in net profit at Rs 292.3 crore for the half year ended September 2007 against Rs 262.8 crore in the corresponding period last year on the back of a doubling of treasury profits and higher fee-based income.

However, the bank’s non-performing assets saw a sharp rise in absolute terms. Treasury profits touched Rs 114 crore against Rs 54.1 crore in the corresponding period last year. The bank’s net NPA was one-and-a-half times higher at Rs 56.6 crore compared to Rs 22.6 crore in HI last fiscal.

Syndicate Bank

Syndicate Bank has reported a 11% year-on-year rise in net profit for the second quarter (Q2) ended September 30, 2007.

Net profit stood at Rs 227.6 crore against Rs 205.1 crore. The muted growth in the net profit is because net interest income (NII) rose by only 1% at Rs 489.1 crore (Rs 484.6 crore). While global business rose by 17% year-on-year to touch Rs 1.4 lakh crore, domestic business volumes saw a rise of 19% at Rs 1.3 lakh crore.

The bank, which has a branch in London, saw its global deposits grow by 18% at Rs 83,849 crore (Rs 71,065 crore) while domestic deposits rose to Rs 79,208 crore (Rs 66,604 crore). While global advances went up 16% Y-o-Y at Rs 53,484 crore (Rs 46,168 crore), domestic advances were up 19.62% at Rs 48,313 crore (Rs 40,389 crore). Net NPA was 0.89% (0.95%) while gross NPA was 3.07% (3.67%).