India Kotak Mahindra Bank appoints external auditor post RBI order
Recasts with comments from management
By Siddhi Nayak
MUMBAI, July 20 (Reuters) -India's Kotak Mahindra Bank KTKM.NS has appointed Grant Thorton Bharat as an external auditor for its IT systems, months after the central bank (RBI)barred the lender from adding new clients digitally, its chief executive officer said on Saturday.
The scope of the audit is finalised with the RBI, and Kotak Mahindra Bank has submitted processtimelines to the regulator, Ashok Vaswani told reporters in a media call.
The bank has "beefed up" its internal tech team, with resources from Accenture, Infosys INFY.NS, Oracle and Cisco, he said.
In April, the RBI asked Kotak Mahindra Bank to stop adding clients digitally and issuing credit cards due to gaps in its IT infrastructure.
Earlier on Saturday, Kotak said its net profit for the April-June quarter jumped 81% from a year earlier, helped by a one-time gain of 35.2 billion Indian rupees ($420.43 million)from the divestment of a stake in its general insurance arm to Zurich Insurance Company in June.
The private lender's standalone net profit, excluding subsidiaries, rose to 62.5 billion rupees in the fiscal first quarter, from 34.52 billion rupees in the same period last year.
That was sharply higher than analyst estimates of 37.57 billion rupees, according to LSEG data.
Kotak's net interest income, the difference between interest earned and paid out, increased 10% on-year to 68.42 billion rupees.
Its net interest margin (NIM), a key gauge of profitability for banks, shrank to 5.02% in the quarter from 5.57% in the same period last year, and was also lower than the 5.28% of the January-March quarter.
Indian banks are trying to raise deposits to fund rising credit growth, which has weighed on their margins.
Kotak's NIMs were also affected because it could not build on its high-yielding credit card book due to the RBI order, chief financial officer Devang Gheewala said in the same conference.
The private lender's loans rose 20% in the quarter, while deposits were up 21%.
Its gross non-performing assets (NPA) ratio, a key gauge of lenders' asset quality, was at 1.39% at the end of June, flat to the prior three months.
The bank is seeing signs of stress in its microfinance book, specifically in certain states, as well as in credit cards, Vaswani added.
($1 = 83.7240 Indian rupees)
Reporting by Siddhi Nayak; Editing by Tom Hogue, Alexandra Hudson
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
