Shares of India’s major private sector lender Kotak Mahindra Bank surged in the afternoon trade on Monday, to emerge among the biggest gainers in the Sensex, after the firm reported robust Q3 results for the October-December period. Kotak Mahindra Bank shares ended 2.42% higher at Rs 1,267.30 on BSE. Kotak Mahindra Bank has reported a 23% on year growth in net profit to Rs 1,291 crore for the third quarter ended December 31, on higher net interest income. The private sector lender had posted a standalone net profit of Rs 1,053 crore in the Oct-Dec quarter of the last fiscal.
Total income for the bank rose to Rs 7,214.21 crore during the December quarter from Rs 6,049.02 crore in the year-ago period, Kotak Mahindra Bank said in a statement. “Net interest income (NII) for the third quarter increased to Rs 2,939 crore from Rs 2,394 crore in the same period a year ago. Net interest margin (NIM) for the quarter was at 4.33 per cent,” it said.
The bank’s asset quality improved, as gross non-performing assets (NPAs) declined to 2.07 per cent of the total advances as compared with 2.31 per cent at the end of the third quarter of 2017-18. Net NPAs of the bank also posted an improvement, and declined to 0.71% of the assets in October-December 2018, against 1.09% a year ago.
Taking stock of the reported results, global firm Morgan Stanley said that it maintains equal-weight with a target price of Rs 1,365. “At bank level, the PAT grew 23% in line with estimates,” the firm noted. The firm noted that core PPoP growth came in at 25% driven by higher than expected opex growth.
Among the major milestones for the gropu in the latest quarter was that total assets managed / advised by the Group as on December 31, 2018 crossed the Rs 200,000 crore mark, up 11% at Rs 203,222 crore, as per the bank’s stock exchange filing.
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