Kotak Bank slides on weak Q4 earnings, downgrades

Synopsis

The backstage lender reported a 14% dip successful its standalone nett aft taxation (PAT) astatine ₹3,552 crore, from the aforesaid 4th past year. Net Interest Income (NII) accrued to ₹7,284 crore for January-March, from ₹6,909 crore past year, up 5% successful the period.

Mumbai: Shares of Kotak Mahindra Bank fell 4.6% connected Monday - their highest single-day diminution successful eleven months - aft weaker-than-expected 4th fourth results led to immoderate expert downgrades.The stock, which ended astatine ₹2,085 connected Monday, was the apical loser connected the benchmark Nifty. The scale was up 0.5%.

"Kotak Mahindra Bank's caller results person been weak, with moderation successful growth, benign NII (Net Interest Income) traction and higher proviso impacting earnings. This led to a driblet successful the stock," said Vishal Narnolia, adjunct vice president of probe astatine ICICI Securities, which has a 'Buy' standing connected the stock, with a people terms of ₹2,400.

The backstage lender reported a 14% dip successful its standalone profit aft tax (PAT) astatine ₹3,552 crore, from the aforesaid 4th past year. Net Interest Income (NII) accrued to ₹7,284 crore for January-March, from ₹6,909 crore past year, up 5% successful the period.

BofA Securities, Nomura, CLSA, JM Financial, and Elara Capital downgraded the banal aft the results. Goldman Sachs, Citi, Macquarie, and Jefferies retained their bullish stances.

Agencies

The caller run-up successful Kotak shares caps upside arsenic the lender is present trading astatine premium valuations, said BofA Securities. The banal is up astir 17% successful 2025 truthful acold arsenic against the Nifty Bank index's gains of astir 8%.. "With near-term assurance astir immoderate meaningful maturation outperformance waning, we spot constricted upside to multiples," said the brokerage.

CLSA besides cited the caller run-up successful Kotak shares arsenic a crushed for its downgrade to 'hold' from 'outperform'.

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