Kotak Mahindra Bank share price closed higher today despite the private sector lender reporting a 10 per cent fall in net profit for Q4. However, net profit rose 22% in FY 20. Share price of Kotak Mahindra Bank gained up to 5.31% to Rs 1,220 compared to the previous close of Rs 1,159 on BSE.
The stock pared gains to close 2.35% or Rs 27.25 higher at Rs 1,185. The stock has gained after two days of losses. Kotak Mahindra Bank stock has fallen 14.4% in the last one year and lost 29.56% since the beginning of this year.
The large cap stock stands lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. 21 of 37 brokerages rate the stock 'buy' or 'outperform', 11 'hold', four 'underperform' and one 'sell', according to analysts' recommendations tracked by Reuters.
Net profit declined 10% to Rs 1,267 crore in Q4 compared to Rs 1,408 crore in the same quarter last year. Net interest margin for Q4 stood at Rs 4.72 per cent. Net interest income (NII) rose to Rs 3,560 crore in Q4 from Rs 3,036 crore during the same period last year.
The bank has made a COVID-19 related general provision of Rs 650 crore, which is higher than the RBI requirement, it said. Total provisioning towards advances (including specific, standard and COVID-19 provisions) is higher than the gross bad loans of the bank.
For FY 20, the lender reported 22.2 per cent rise in net profit to Rs 5,947 crore compared with Rs 4,865 crore in the previous financial year. Net interest income for FY20 increased to Rs 13,500 crore from Rs 11,206 crore in FY19.
Advances as on March 31 were up 7 per cent to Rs 219,748 crore, compared to Rs 2,05,695 crore as on March 31, 2019. The lender made a COVID-19 related general provision of Rs 650 crore, which is higher than the RBI requirement, it said.
Total provisioning towards advances (including specific, standard and COVID-19 provisions) is higher than the gross bad loans of the bank, it added. Kotak Mahindra Bank's CASA (Current Account and Savings Account) ratio as on March 31 stood at 56.2 per cent, compared to 52.5 per cent as on March 31, 2019.
The board also approved of Uday Kotak's reappointment as MD & CEO from January 1, 2021, to December 31, 2023, subject to approval of the shareholders, RBI and other authorities concerned.