The stock fell 2.03 per cent to Rs 1,322.45 per share on the BSE and on the NSE it 2 per cent lower at Rs 1,322.50.
Q1 FY21 net profit remained nearly flat when compared sequentially from Rs 1,266.60 crore in March quarter. (Photo: Getty)
The share price of Kotak Mahindra Bank on Monday plunged over 2 per cent. This drop comes after the private lender reported an 8.5 per cent decline in its standalone net profit for the first quarter.
The stock fell 2.03 per cent to Rs 1,322.45 per share on the BSE and on the NSE it 2 per cent lower at Rs 1,322.50.
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Earlier in the day, the bank posted an 8.5 per cent decline in its standalone net profit to Rs 1,244.45 crore in the first quarter ended on June 30. In 2019, the bank had posted a net profit of Rs 1,360.20 crore in the year-ago period.
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However, the Q1 FY21 net profit remained nearly flat when compared sequentially from Rs 1,266.60 crore in March quarter.
Total income (standalone) also declined to Rs 7,685.40 crore in April-June quarter of 2020-21, over Rs 7,944.61 crore in the same period of 2019-20, Kotak Mahindra Bank said in a regulatory filing.
On the asset quality front, the lender witnessed a slight deterioration, as the gross non-performing assets (NPAs) rose to 2.70 per cent of the gross advances as on June 30, 2020, from 2.19 per cent in the year-ago period.
It is worth noting that Kotak Mahindra Bank is not alone in this downtrend. ICICI Bank, HDFC Bank, Axis Bank and banking stocks traded in red as well, as a side effect of RBI’s Financial Stability Report. Published on a July 24, the report said that the gross non-performing assets of scheduled commercial banks may escalate to 14.7 per cent cent under a very severely stressed scenario.
“Macro stress tests for credit risk indicate that the GNPA ratio of all SCBs may increase from 8.5 per cent in March 2020 to 12.5 per cent by March 2021 under the baseline scenario; the ratio may escalate to 14.7 per cent under a very severely stressed scenario,” the RBI had said.
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