Updated 5 May 2025 at 15:14 IST
Kotak Mahindra Banks Share Price Falls Nearly 6%: Is It A Good Time To Invest?
Kotak Mahindra Bank shares fell over 4% to Rs 2,083.75 apiece on Monday, after the company announced its final quarter results.
The shares of Kotak Mahindra Bank fell over 4% to Rs 2,083.75 apiece on Monday, after the company announced its final quarter results, which were much weaker than anticipated.
Kotak Mahindra Bank Share Price Today
At 2:19 pm on Monday, the shares of the private lender were trading 4.62% or Rs 101 lower at Rs 2,084 apiece, as compared to its previous close at Rs 2,185 apiece.
Kotak Mahindra Bank Q4 Results FY25
Kotak Mahindra Bank reported a 14% decline in its net profit to Rs 3,552 crore in Q4FY25, primarily caused by a sharp rise in provisions for bad loans.
The private lender's interest income for the January-March quarter increased 10% YoY to Rs 13,529.77 crore as compared to Rs 12,307.06 crore in the same quarter of the previous fiscal.
The bank's provision for bad loans increased 245% to Rs 909 crore in the final quarter of FY25, up from Rs 264 crore in the year-ago period. Its gross non-performing assets (NPAs) inched up by 3 basis points 1.42%, as compared to 1.39% a year ago.
Net NPAs of the bank declined by 3 basis points to 0.31%, down from 0.34% in the same quarter last year, indicating improved recovery and provisioning measures.
Kotak Mahindra Bank: Brokerage Report
The bank reported a miss on key performance metrics, and deterioration in its asset quality further weighed on sentiment. Consequently, different brokerages have also downgraded the bank's stock.
CLSA has downgraded the stock to "Hold" from its previous rating of "Outperform," despite raising the target price to Rs 2,225 per share from Rs 2,125 per share.
According to CLSA, the bank's performance in the final quarter is mixed and the pre-provision operating profit (PPoP) missed estimates by 3% due to weaker Net Interest Income (NII) and increased operating expenses.
Further, the lender's credit cost also rose, as it increased its provision coverage ratio.
Published By : Sagarika Chakraborty
Published On: 5 May 2025 at 15:14 IST