Shares of Kotak Mahindra Bank fell nearly 7% after the bank's September quarter earnings report failed to meet investor expectations. Despite a 13% increase in overall profit, the standalone net profit grew by only 5%, impacted by higher provisions.
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- Kotak Mahindra Bank shares dropped nearly 7% following disappointing Q2 earnings.
- Standalone net profit increased by only 5%, hindered by higher provisions.
- The bank`s market valuation eroded by Rs 24,801.79 crore.
Shares of Kotak Mahindra Bank on Monday dropped nearly 7 per cent after its September quarter earnings failed to impress investors. The stock declined by 6.63 per cent to Rs 1,743 per share on the BSE after a weak start to trading. On the NSE, it slumped by 6.73 per cent to Rs 1,745.10 per share. As per PTI, this led to a significant loss in market valuation.
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The market valuation of the company eroded by Rs 24,801.79 crore, bringing it down to Rs 3,46,936.88 crore. According to PTI, the stock was the biggest laggard among BSE Sensex firms during morning trade.
Kotak Mahindra Bank on Saturday posted a 13 per cent growth in its September quarter profit to Rs 5,044 crore, driven by its subsidiaries' performance. However, as per PTI, on a standalone basis, the private sector lender’s net profit grew by only 5 per cent to Rs 3,344 crore, limited by an increase in provisions.
The core net interest income increased by 11 per cent, reaching Rs 7,020 crore, fuelled by a 17 per cent growth in advances and a 0.31 per cent narrowing of the net interest margin to 4.91 per cent. PTI reports that Ashok Vaswani, the bank’s Chief Executive Officer and Managing Director, cited reverses in unsecured loans such as personal loans and credit cards, along with an embargo from the Reserve Bank of India on adding new customers, as factors that affected the margins.
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