Kotak Mahindra Bank Shares Slump 5%, Market Value Drops Rs 15,954 Cr

New Delhi, Oct 21 (PTI) Shares of Kotak Mahindra Bank on Monday ended nearly 5 per cent lower after its September quarter earnings failed to cheer investors.

The stock tanked 4.29 per cent to settle at Rs 1,789.55 on the BSE. During the day, it tumbled 7.20 per cent to Rs 1,735 apiece.

On the NSE, it ended 4.73 per cent lower at Rs 1,782.50 after slumping 7.27 per cent to Rs 1,735 during the day.

The company's market valuation eroded by Rs 15,954.65 crore to Rs 3,55,784.02 crore.

The stock was the biggest laggard among the BSE Sensex firms.

In traded volume terms, 6.14 lakh shares of the firm were traded on the BSE and 131.78 lakh shares on the NSE during the day.

Sharp fall in Kotak Mahindra Bank shares dragged the markets lower.

The 30-share BSE benchmark declined 73.48 points or 0.09 per cent to settle at 81,151.27. The NSE Nifty dipped 72.95 points or 0.29 per cent to 24,781.10.

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.