Kotak Mahindra Bank share continued falling for the sixth straight session amid a 3.8% intraday fall.
The fall came amid the private sector lender reporting a 16.1% YoY growth in profit at Rs 1,853.5 crore for the quarter ended December 2020 against a profit of Rs 1,596 crore in a year-ago period.
Net interest income of the lender rose 16.8% YoY to Rs 4,007 crore in Q3FY21 as compared to Rs 3,430 crore in the same period last year.
At the end of December 2020, the bank's advances stood at Rs 2,14,103 crore, down 1.2% as compared to Rs 2,16,774 crore as of December 2019. However, advances rose 4.5% sequentially. Deposits grew 10.8% YoY and 1.4% QoQ to Rs 2,65,304 crore.
In the last six days, the stock has lost 8.7% value.
Stock of Kotak Bank opened with a loss of 2.09% today at Rs 1,725.25 and fell 3.5% to day's low of Rs 1,700.45. The stock also hit a day's high of Rs 1,763.50 in early session. Yesterday, Kotak Bank shares closed 1.58% lower at Rs 1762.15.
Kotak Bank stock stands higher than 100 and 200-day moving averages but lower than 5, 20, 50-day moving averages.
The share has fallen 7% in one week and 13% in a month. Year-to-date, the stock is down 13%.
Market capitalisation of the lender in the closing session today stood at Rs 3,42,127.70 crore. The stock has touched a 52-week high of Rs 2,026.55 and a 52-week low of Rs 1,000.35. Share of the private lender, with Rs 2 face value has risen 6% in one year.
Meanwhile, the private banking index was down 0.78% on BSE. Broader market indices continued falling sharply for the fifth consecutive session on Thursday, the derivatives expiry day and closed 1% lower each, amid weak global equities. Ahead of the 2021 budget, Sensex ended 535 points lower at 46,874 and Nifty fell 149 points to 13,817.
On Kotak Bank, brokerage UBS maintained a 'sell 'call with a target of Rs 1,700 per share and said that the management is confident on profitability but the positives have already been priced in the stock value. It added the company reduced the credit cost estimate to 1.4% from 1.5% earlier and its loan growth to 3% in FY21 from 5%.
Morgan Stanley said Q3 estimates were largely missed due to one-time interest income reversals and said that Kotak Bank's pre-provision operating profit (PPOP) growth should remain strong. The brokerage is 'equal weight' on the stock with a target at Rs 2,025 per share. It expects the lender's asset quality to normalise hereon and focus on loan growth to sustain.
Kotak Bank shares closed 1.97% lower at Rs 1,727 on BSE today.