Derivatives cost Kotak bank clients Rs 612 cr

Print Email Feedback Discuss

Rate Article

Rating:

Express news service Posted: May 10, 2008 at 2338 hrs IST

MUMBAI: Private sector Kotak Mahindra Bank has made a provisioning of Rs 86 crore to cover the mark-to-market (MTM) losses of its clients on account of forex derivative transactions. Around 45 clients of the bank which have taken exposure to forex derivatives have incurred MTM losses of Rs 612 crore on account of forex transactions as on May 8, 2008. “With regard to exposure to forex derivatives, the bank has no exposure to SME clients,” vice-chairman and MD Uday Kotak said.

Many banks, including SBI, ICICI Bank and Axis Bank have made provisions on account of the losses of their clients in forex transactions.

Meanwhile, Kotak Mahindra Bank announced a consolidated net profit of Rs 240 crore for the fourth quarter ended March 31, 2008, a 41 per cent growth over the corresponding period a year-ago. The bank had a net profit of Rs 170 crore in the fourth quarter of financial year ended March 31, 2007.

Ads By Google

TERMS OF USE:
The views represented here are not neccesarily endorsed by www.expressindia.com and its allied websites. All messages will be moderated and no message that has inflammatory, abusive, derogatory language or any language deemed unfit for publication by the editor will be displayed. Though it will be endeavoured that as many messages as possible be displayed, there will be time lag between the submission and publication of the messages. The website reserves the right to publish or reject any message.

I agree to the terms of use.

View all Messages [ 0 ]

Be the first to comment.

Mail this page

Message*	Maximum characters allowed

Name*		Email ID*
Subject*		Country*

Derivatives cost Kotak bank clients Rs 612 cr

Related Stories: