Kotak Mahindra Bank shares slump nearly 7 pc; market valuation erodes by Rs 24,801.79 cr

New Delhi, Oct 21 (PTI) Shares of Kotak Mahindra Bank on Monday tanked nearly 7 per cent after its September quarter earnings failed to cheer investors.

The stock tumbled 6.63 per cent to Rs 1,743 apiece on the BSE after a weak beginning to the trade.

On the NSE, it slumped 6.73 per cent to Rs 1,745.10 a share.

The company’s market valuation eroded by Rs 24,801.79 crore to Rs 3,46,936.88 crore.

The stock was the biggest laggard among the BSE Sensex firms during the morning trade.

Kotak Mahindra Bank on Saturday posted a 13 per cent growth in September quarter profit to Rs 5,044 crore, helped by performance of its subsidiaries.

On a standalone basis, the private sector lender’s net profit for the quarter grew 5 per cent to Rs 3,344 crore, limited by a jump in provisions.

The core net interest income grew 11 per cent at Rs 7,020 crore for the bank on the back of a 17 per cent growth in advances and a 0.31 per cent narrowing in the net interest margin at 4.91 per cent.

The bank’s Chief Executive Officer and Managing Director, Ashok Vaswani, said reverses in unsecured loans such as personal loans and credit cards and the embargo imposed by the Reserve Bank of India, making it difficult to add more new customers, impacted the margins.