By Admin 
Kotak mahindra bank share falls: After the quarterly results of Kotak Mahindra Bank, its stock has seen the biggest decline in the last fifteen months. On Monday, its stock fell more than 7 percent to the lowest level of the day at 1,977.20 on BSE. The bank’s shares fell 6.48 percent to a low of Rs 1,987.35 at around ten in the morning.
This decline in the stock of private bank came last week after the April-June quarter result, in which the net profit has come down by 7 percent to Rs 3,282 crore on an annual basis. This reduction was mainly due to reduction in interest rates, slow increase in fee income and high provisions.
Decline in bank’s profits
Kotak Mahindra Bank had its integrated net profit of Rs 4,472 crore in the June quarter of the current financial year. A year ago, the bank’s integrated net profit was Rs 7,448 crore a year ago. However, other activities of the bank have seen a boom. Kotak Mahindra Bank said that its profit has decreased due to pressure on retail commercial vehicle portfolio due to adverse to comprehensive economic conditions. Last year’s same profitable profits were also included Rs 3,000 crore from the sales of stake in the General Insurance Branch.
Pressure on micro finance
Kotak Mahindra said in the exchange filing that the total income on the bank’s interest during the first quarter was Rs 13,836 crore this time. This is an increase of 8.5 % compared to the same period last year. Last year, income on interest was Rs 12,746 crore. While the bank’s net interest income (NII) has increased by 6% on an annual basis. It increased to Rs 7,259 crore in the June quarter. The bank’s Non performing assets increased to 1.48%. It was 1.39% during the same period last year.
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