Kotak Mahindra Bank Share Price Drops After Q4 Results

Kotak Mahindra Bank Ltd.'s share price declined nearly 6% following its fourth-quarter earnings. The bank's standalone net profit fell by 14% year-on-year to Rs 3,552 crore for the quarter ending March 31, 2025, primarily due to increased provisions for its distressed microfinance loans.

Analysts polled by Bloomberg had expected a net profit of Rs 3,606 crore. The provisions surged to Rs 909 crore from Rs 264 crore in the same period last year. But despite this, the bank's net interest income saw a 5% year-on-year increase, reaching Rs 7,284 crore, with net interest margins improving slightly to 4.97%.

The bank's asset quality remained stable, with the gross non-performing assets (NPA) ratio decreasing to 1.42% from 1.5% in the previous quarter and the net NPA ratio falling to 0.31% from 0.41%. The provision coverage ratio stood at 78% as of March 31, and fresh slippages reduced to Rs 1,488 crore from Rs 1,657 crore in the prior quarter.

The scrip fell as much as 5.82% to Rs 2,058 apiece. It pared losses to trade 5.71% lower at Rs 2,060 apiece, as of 10:12 a.m. This compares to a 0.53% advance in the NSE Nifty 50 Index.

It has risen 26.85% in the last 12 months. Total traded volume so far in the day stood at 5.8 times its 30-day average. The relative strength index was at 41.

Out of 37 analysts tracking the company, 28 maintain a 'buy' rating, 11 recommend a 'hold,' and five suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.2%.