On Monday, October 21, Kotak Mahindra Bank’s shares fell more than 5% following the lender’s release of erratic second-quarter results. The price target for Kotak Mahindra Bank shares is ₹2,286 per share, according to global brokerage company Goldman Sachs, which has a “Buy” rating. Lower fees, greater loan losses, and slower loan growth were the main causes of Kotak Bank’s second-quarter earnings falling short by 5%, compared to Goldman Sachs’ projections and 2% versus consensus.
Kotak Mahindra Bank Q2 Results
Kotak Mahindra Bank reported a slight increase in its standalone profit to Rs 3,344 crore for the second quarter that ended in September 2024 earlier on Saturday. In the same quarter last year, the private sector lender reported a net profit of Rs 3,191 crore. From Rs 13,507 crore during the same period last year to Rs 15,900 crore during the quarter under review, total income climbed.
During the quarter, the bank earned interest income of Rs 13,216 crore, up from Rs 11,193 crore during the same time last year.
Kotak Mahindra Bank Financial Performance
All things considered, the bank’s PAT increased 13% YoY to ₹5,044 crore. As of September’s conclusion, assets under management (AUM) had increased 37% YoY to ₹6,80,838 crore from ₹4,98,342 crore in Q2FY24.
With its market share falling to 11.6% from 12.2%, Kotak Securities reported a PAT of ₹324 crore, down from ₹400 crore YoY. In the meantime, Kotak Mahindra AMC’s AUM increased 37% YoY to ₹6,80,838 crore, and its PAT increased to ₹197 crore from ₹124 crore in a sequential manner.
Kotak Mahindra Bank NPAs
The bank said throughout the quarter that it was able to lower gross non-performing assets (NPAs) from 1.72 percent a year earlier to 1.49 percent of gross loans at the end of September 2024. However, at the end of the second quarter of the previous fiscal year, net non-performing assets, or bad loans, increased to 0.43 percent from 0.37 percent. In Q2FY24, the bank’s net profit increased by 13% to Rs 5,044 crore from Rs 4,461 crore on a consolidated basis.
