Kotak Mahindra Bank Q1 results lag estimates; stock tanks 5%

Kotak Mahindra Bank share price plunged a whopping 5 per cent on Tuesday right after the Uday Kotak-owned bank posted a smaller-than-expected 12.3 per cent rise in net profit for the June quarter. The Q1 net profit came in at Rs 1,024.94 crore on account of higher provisions for treasury losses even as its bad loan ratio improved.

Kotak Mahindra Bank's net profit stood at Rs 912.73 crore in the corresponding period of 2017-18.

Reacting to the numbers, Kotak Mahindra Bank stock slipped as much as 4.8 per cent to Rs 1335 on the BSE. It rallied close to 30 per cent in the June quarter, outperforming the Nifty and the Nifty Private Bank index. 

Total income during the quarter stood at Rs 6,644.29 crore, up 19.44 per cent from the year-ago period, Kotak Mahindra Bank said in a filing to BSE. 

Gross non-performing assets (NPAs) reduced to 2.17 per cent of gross advances as of June quarter 2018-19 from 2.58 per cent in the same period last year.

Net NPAs also came down to 0.86 per cent of net advances from 1.25 per cent in the year-ago period. 

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The bank said slippages were at Rs 321 crore as against Rs 594 crore in April-June, 2017-18. 

Provisions for bad loans and contingencies were at Rs 469.63 crore for June quarter in comparison to Rs 203.74 crore in the same period a year ago.

Net Interest Income (NII) for the reported quarter rose to Rs 2,583 crore from Rs 2,246 crore earlier. Net Interest Margin (NIM) for the quarter under review was at 4.3 per cent.