There are several ways to do that.
if you could handle it in your application it would be better but anyways there you are
select distinct(Emp_Status),
count ( Att_Mints/60) as OTHOUR,
cast(count(Att_Mints) / 60 as varchar(3))+
':'+
cast(count(Att_Mints) % 60 as varchar(3))
as OTHOUR2,
COUNT (Att_Totalmints /60 ) as ProductionHours
from Attendence
inner join EmployeeMaster on fk_Att_EmpCode=fk_Att_EmpCode
where year(Att_Date)='2014' and Month (Att_Date)='1'
group by Emp_Status
in the case that you want to pad it you could use the following :
cast(count(Att_Mints) / 60 as varchar(3))+
':'+
right('0' + CAST(count(Att_Mints) % 60 as varchar(2)) ,2)
as OTHOURPad,