Latest News | Kotak Mahindra Bank Shares Zoom over 12 Pc

New Delhi, Oct 27 (PTI) Shares of Kotak Mahindra Bank closed with over 12 per cent gain on Tuesday after the company reported a 22 per cent growth in consolidated net profit for September quarter.

The stock jumped 12.17 per cent to close at Rs 1,588 on BSE. During the day, it zoomed 13 per cent to Rs 1,600.95.

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At NSE, it settled with 12 per cent gain at Rs 1,587.65.

The company's market valuation also rose by Rs 34,121.84 crore to Rs 3,14,327.84 crore.

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In volume terms, 9.61 lakh shares were traded at BSE and over 3 crore shares at NSE.  

On Monday, shares of Kotak Mahindra Bank had gained over 2 per cent.

Despite a marginal dip in loan book, reliance on credit substitutes in a market impacted by slowing economic growth helped Kotak Mahindra Bank report a 22 per cent growth in consolidated net profit at Rs 2,947 crore for the July-September quarter.

Without denying the speculation about a merger with smaller rival IndusInd Bank, the private sector lender said the objectives of a recent, Rs 7,000-crore capital raising exercise included acquisitions but added that it will be using the money judiciously.

On a standalone basis, it reported a profit after tax of Rs 2,184 crore for the July-September quarter, up 27 per cent compared to the year-ago period. Total income (standalone) rose to Rs 8,288.08 crore in the July-September period as against Rs 7,986.01 crore in the year-ago period.

The core net interest income grew by 17 per cent to Rs 3,913 crore despite a nearly 4 per cent decrease in loan book and the net interest margin coming down to 4.52 per cent from 4.60 per cent.

Its joint managing director Dipak Gupta said that for the last few months, the bank has been depending more on credit substitutes like certificate of deposits, commercial paper, non-convertible debentures for its earnings by deploying its deposits.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)