Kotak Mahindra Bank bounces back

about 2 years ago
No Image

Kotak Mahindra Bank posted a good set of numbers for Q1FY19 but because it lagged estimates, the markets gave a reaction yesterday itself, dropping 5%. Today, the market seems to be seeing the numbers differently – the stock opened weaker but soon rose over 1% to Rs.1365.50. Its 52-week high and low stands at Rs.1424 and Rs.962.30 respectively.

The bank reported a 12% (YoY) rise in net profit at Rs.1025 crore - the jump in net profit could have been higher but for the increase in provisioning – it rose by a whopping 130% (YoY) and 53% (QoQ) at Rs.470 crore. The NII increased by 15% to Rs.2583 crore

This increase in provisioning is what could have bothered the market more than estimates.

In fact its asset quality improved – Gross NPA fell marginally from 2.22% to 2.17% and Net NPA fell from 0.98% to 0.86% (QoQ).

Popular Comments

No comment posted for this article.