Kotak Mahindra Bank shares will be in focus on Monday, 26 October, after the private sector lender reported a strong earnings performance for the September quarter, with consolidated net profit rising 26% year-on-year to ₹5,645 crore.
On a standalone basis, the bank's profit after tax increased 29% to ₹4,212 crore, supported by growth in core income and lower provisions.
Net interest income (NII), the difference between interest earned and interest expended, grew 16% year-on-year to ₹8,459 crore. However, net interest margin (NIM) contracted by 0.23 percentage points during the quarter, partly due to the bank's mobilisation of ₹55,344 crore in FCNR(B) deposits under the Reserve Bank of India's concessional swap facility.
The bank also disbursed loans worth ₹16,110 crore under the FCNR(B) scheme, which permitted leveraged borrowing against deposits.
Kotak Mahindra Bank share price on Friday, 23 October ended 1.70% lower at ₹430.10 apiece on the BSE.