The bank posted a standalone net profit at Rs 695.8 crore in January-March quarter from Rs 635 crore in last quarter. During the quarter, its standalone net interest income was at Rs 1857.2 crore against Rs 1,766 crore in the quarter-ago period.
Speaking to CNBC-TV18, Kotak, the bank’s Executive Vice-Chairman and Managing Director, said he estimates loan growth for FY17 to be around 20 percent.
The bank has one of the lowest restructured loan books, he said, adding that the loan recovery process today is much tougher than before.
Kotak said if a loan turns bad, one should be able to take it on the chin, and provide for it.
“Don’t mix accounting with what is right for recovery of the money.”
As regards sectors which are seeing an uptick in investment, he picked the commercial vehicle segment, business banking and the small business segment.
The bank will look at the individual books of companies before making a decision to loan. It wouldn’t follow the herd mentality, he said.
The bank’s fundamental philosophy is to look at risks and returns and take a call based on risk-adjusted returns rather than blindspots.