Kotak Mahindra Bank shares rose about 2% Monday, two days after the Indian lender reported 26% annual growth in consolidated profit, even as its standalone net interest margin narrowed.
At 12:14 a.m. ET Monday (04:14 UTC), a National Stock Exchange (NSE) quote put the shares at ₹439.35, up 2.06%, after an intraday high of ₹446.30. Kotak opened at ₹440.90, compared with its ₹430.50 close on Oct. 23. FactNews India’s early market roundup listed the stock among Nifty 50 gainers, with a 2.42% rise.
Kotak’s unaudited results for the quarter ended Sept. 30 showed consolidated profit after tax of ₹5,645.38 crore, up 26% from the same quarter last year and 3% from the June quarter. On a standalone basis, profit reached ₹4,212 crore, a 29% year-over-year increase; net interest income was ₹8,459 crore, up 16%.
The standalone net interest margin was 4.31%, compared with 4.53% in the June quarter and 4.54% a year earlier. Kotak linked the moderation largely to mobilizing about ₹55,344 crore in FCNR(B) deposits during the quarter. Total deposits grew 23% year over year to ₹651,491 crore; excluding FCNR(B) deposits, growth was 13%.
The bank’s current- and savings-account ratio stood at 38.2%, down from 42.3% a year earlier; excluding FCNR(B) deposits, it was 41.8%, Kotak said.
Net advances increased 25% year over year to ₹577,295 crore. The bank said growth was 19% after excluding loans against FCNR(B) deposits and a portfolio acquired from Kotak Mahindra Investments. Gross and net nonperforming assets were 1.04% and 0.24% as of Sept. 30, down from 1.39% and 0.32% a year earlier.
NDTV Profit and Mint reported that JM Financial upgraded its rating to buy from add and raised its price target to ₹500 from ₹415. Mint separately reported that Axis Direct maintained a buy rating and a ₹550 target.
