New Delhi: Shares of Kotak Mahindra Bank on Monday tanked nearly 5 per cent after the firm reported a 7.57 per cent decline in consolidated net profit for the March quarter of FY 2024-25.
The stock declined by 4.57 per cent to settle at Rs 2,085.05 apiece on the BSE. During the day, it dropped 5.79 per cent to Rs 2,058.35.
On the NSE, shares of the firm fell by 4.58 per cent to Rs 2,085. Intra-day, the stock tumbled 5.82 per cent to Rs 2,058 apiece.
The stock emerged as the biggest laggard among the Sensex and Nifty firms.
The company's market valuation eroded by Rs 19,866.61 crore to Rs 4,14,560.11 crore.
Kotak Mahindra Bank on Saturday posted a 7.57 per cent decline in consolidated net profit to Rs 4,933 crore for the March quarter of FY 2024-25, primarily due to elevated stress in the microlending book.
The private sector lender's net profit during the reporting quarter on a standalone basis decreased 14 per cent to Rs 3,552 crore, from the year-ago period's Rs 4,133 crore.
The core net interest income of the bank rose 5 per cent to Rs 7,284 crore during the reporting quarter, while the other income grew 7 per cent to Rs 3,182 crore.
The customer assets were up 13 per cent, while the net interest margin narrowed sharply to 4.97 per cent against 5.28 per cent in the year-ago period.
Apart from the impact of the policy rate cuts, the challenges on the MFI book, which got halved to Rs 4,500 crore over the last year, hit the bank's net interest margins.
On the asset quality side, the bank witnessed marginal deterioration with gross non-performing assets (NPA) of the total advances rising to 1.42 per cent in the fourth quarter from 1.39 per cent at March-end last year.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
