Kotak Mahindra Bank shares tank 7.50% as Q1 profit drops

New Delhi: Shares of Kotak Mahindra Bank on Monday tumbled 7.50 per cent on disappointing June quarter numbers from the company.

The stock dropped 7.50 per cent to settle at Rs 1,965.60 on the BSE. During the day, it tumbled 7.75 per cent to Rs 1,960.10.

At the NSE, it tanked 7.33 per cent to Rs 1,968.70.

The company's market valuation eroded by Rs 31,670.19 crore to Rs 3,90,837.93 crore.

The stock emerged as the biggest laggard among the Sensex and Nifty firms.

In volume terms, 3.63 lakh shares of the firm were traded at the BSE and 138.25 lakh shares on the NSE during the day.

Kotak Mahindra Bank on Saturday reported a consolidated net profit of Rs 4,472 crore for the June quarter, and flagged stress on the retail commercial vehicle portfolio due to adverse macroeconomic conditions.

The profit in the year-ago period was Rs 7,448 crore, but it had included gains of over Rs 3,000 crore on its stake sale in the general insurance arm, while the net profit for the March quarter stood at Rs 4,933 crore.

On a standalone basis, the private sector lender's net profit dropped 7 per cent year-on-year to Rs 3,282 crore, which was attributed to reverses on the core income front due to rate cuts by the RBI, slower growth in fee income and also higher provisions.

The core net interest income grew 6 per cent to Rs 7,259 crore on the back of a 14 per cent loan growth, but restricted by a 0.37 per cent narrowing in the net interest margin to 4.65 per cent.