Kotak Mahindra Bank shares drop over 3 pc; mcap declines Rs 12,852 cr

New Delhi, Jul 22 (PTI) Shares of Kotak Mahindra Bank on Monday declined over 3 per cent after the firm reported a muted net profit growth on a standalone basis for the June quarter.

The bank’s stock declined 3.30 per cent to finish at Rs 1,761.70 on the BSE. During the day, it tanked 4 per cent to Rs 1,748.85.

At the NSE, shares of the firm dropped 3.24 per cent to Rs 1,762.45.

The company’s market capitalisation (mcap) declined Rs 12,852.08 crore to Rs 3,49,302.92 crore.

The stock emerged as the biggest laggard among the BSE Sensex firms.

Kotak Mahindra Bank on Saturday reported a 79 per cent jump in consolidated net profit in the first quarter of the current fiscal to Rs 7,448 crore compared to the year-ago period, majorly helped by a stake sale in its general insurance arm, and the performance of subsidiaries.

On a standalone level, the private sector lender’s net profit grew 2 per cent to Rs 3,520 crore, and the management conceded that the business restrictions imposed by the Reserve Bank of India (RBI) due to shortcomings on the technology front had an impact.

Its Chief Executive and Managing Director Ashok Vaswani said the bank has made “significant progress” on the technology front during the quarter and has also appointed consultancy firm GT Bharat as an external auditor to assess its systems.

It has also beefed up its internal team with resources coming in from tech majors like Accenture, Infosys, Oracle, and Cisco, he said.

However, it is up to the RBI when it chooses to lift the restrictions.

“Kotak Mahindra Bank saw a weak quarter,” Gaurav Jani, Research Analyst, Prabhudas Lilladher Pvt Ltd, said.