Kotak Mahindra Bank share price (Image source: iStockphoto)
On Monday, shares of Kotak Bank plunged over 5 per cent and at the time of filing, the stock was trading at Rs 1,770.65.
the actions of Kotak Mahindra Bank fell after the announcement of its quarterly results. The private sector lender reported a 5% year-on-year rise in standalone profit after tax (PAT) for the quarter ended September 2024, reaching Rs 3,344 crore, up from Rs 3,191 crore in the same period of the year. last year. Net interest income (NII) grew 11% to Rs 7,020 crore, compared to Rs 6,297 crore in Q2FY24.
However, the bank’s net interest margin (NIM) declined to 4.91%, down from 5.22% a year ago. Meanwhile, its gross doubtful assets (GNPA) rose to 1.49%, slightly down from 1.72% last year, while net doubtful assets rose to 0.43%, up from 0.37%. .
Rahul Malani, executive vice president of Sharekhan fundamental research at BNP Paribas, said, “Kotak Bank posted a mixed performance in Q1FY25. While earnings (excluding one-offs) were broadly in line, NII was more weak due to higher than expected NIM compression. Core PPoP (Ex. Treasury earnings) grew 9% YoY / down 3% QoQ Core credit cost continued to remain within the guided range, but was slightly higher. high. Asset quality trends remained broadly stable.
Malani added: “Overall deposit growth was weaker than expected, led by CASA, although term deposit growth was healthy. Loan growth remained healthy, driven by the pick-up in loan growth. corporate loans and growth in unsecured retail advances, particularly personal loans and credit cards, has slowed down, which is on expected lines mainly due to RBI sanctions The bank managed to report a RoA (exc. . extraordinary) of ~2.4%. Among the subsidiaries, the performance of Kotak Securities and Kotak AMC was strong.”
The stock’s 52-week high and 52-week low are Rs 1,942 and Rs 1,543.85 respectively. As per BSE analysis, the stock has given negative returns of 1.39 percent in the last 6 months.
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