Kotak Bank's PAT down 3% in Q2

THE NET INTEREST margins moderated to 4.54% from 4.65% a quarter ago. Other income was down 3.5% on year and nearly 16% on quarter. If there are no further rate cuts, the net interest margins are likely to inch up gradually in the next two quarters, the bank’s management said in the post earnings media call.

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In terms of the bank’s balance sheet, net advances rose 16% on year while deposits were up by 14.5% as on September 30. Cost of funds fell to 4.70% from 5.15% a year ago. Within advances, consumer banking book grew by 16% on year, while the commercial banking book was up 5%. Corporate banking increased by 18% on year as on September end. While segments such as home loans, business banking assets, personal loans and consumer durables saw growth on a year-on-year basis, credit card book fell by 14% on year and 4% on quarter. “We are working very hard on the credit card book. In the end of September, the credit card spends picked up nicely and we are hoping to build on that momentum. Let’s see how it plays out int