Kotak Bank remains down

Kotak Mahindra Bank announced its earnings for Q3FY20 yesterday and they were more or less as per most estimates. But like HDFC Bank, the marginal deterioration in the asset quality spooked the market.

On the profitability front, the Bank posted a 24% (YoY) rise in net profit at Rs.1596 crore. NII rose 18% at Rs.3429 crore while NIM rose from 4.61% to 4.69%.

The market was also perturbed with the slower pace of growth in advances – they were up 10% at Rs.2.16 lakh crore.

For the fourth consecutive quarter, its asset quality came down – Gross GPA rose from 2.32% to 2.46% (QoQ) while Net NPA also rose a tad from 0.85% to 0.89%.

Provisions for the quarter were at Rs.444 crore v/s Rs.408 crore in Q2 where there was a write-back to the tune of Rs.32 crore.

CASA was at 53.7% v/s 50.7% (YoY) while CAR, as per Basel III for the quarter was at 18.2% and 17.7% as per Tier-I.

The stock price yesterday fell, post the earnings by over 4% to Rs.1618.05; today it opened lower at Rs.1608.90 and went down further 2% to Rs.1586.05.