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BusinessKotak Bank shares surge 5% as Q4 net profit rises 22% on...

Kotak Bank shares surge 5% as Q4 net profit rises 22% on robust loan growth


Kotak Mahindra Bank saw its share prices jump nearly 5% on Monday after reporting better-than-expected results for the fourth quarter of the fiscal year. The leading private sector lender's consolidated net profit climbed 22% to Rs 18,213 crore, fueled by strong loan growth and lower provisions.

The Mumbai-headquartered bank posted an 18% rise in standalone net profit to Rs 4,133 crore for the January-March period. While net interest income grew 13% to Rs 6,909 crore, narrowing net interest margins limited further growth. Total advances increased 20% during the quarter with robust demand across retail, commercial and rural segments.

Investors cheered the strong earnings performance, sending Kotak Bank shares up 4.85% to close at Rs 1,622.35 on the BSE. On the Stock Exchange, the scrip jumped 4.90% to end the day at Rs 1,622.50. This made Kotak Mahindra Bank the top gainer among key index constituents.

During an earnings call, CEO Ashok Vaswani assured that a recent RBI directive related to new customer onboarding will have minimal financial impact. He estimated it could reduce profit before tax by Rs 300-450 crore for the current fiscal year. This statement helped alleviate concerns around rising regulatory oversight of the lender.

In summary, Kotak Bank's latest results indicate a steady recovery in activity post the third wave of the pandemic. Strong credit growth and stable asset quality provides confidence that profitability will continue increasing in the coming quarters.

The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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