Kotak Mahindra Bank fell nearly 7.50 percent after reporting a consolidated net profit of ₹4,472 crore for the June quarter.
Primary Causes of the Decline:
- Disappointing Q1 FY26 Results:
- Net profit fell 7% YoY to ₹3,282 crore – below market expectations.
- Sharp Decline in Net Interest Margin (NIM):
- NIM dropped to 4.65%, down from previous quarters, indicating reduced profitability on core lending.
- Rising Credit Costs:
- 50% YoY increase in credit costs, signaling higher provisioning for bad loans or asset stress.
- Muted Loan Growth:
- Loan book growth was tepid compared to peers, impacting future revenue visibility.
- Asset Quality Concerns:
- Subtle signs of stress in the loan portfolio raised red flags for analysts and investors.
Past Performance:
Kotak Mahindra Bank shares reached a 52-week high of ₹2,301.55 on April 22, 2025, and fell to a 52-week low of ₹1,679.10 on November 13, 2024. Over the past year, the stock has delivered a positive return of 10%, gaining nearly 5% in the last six months. However, it has declined by over 9% in the past month.
Stay tuned for more updates.