Kotak Mahindra Bank shares climb nearly 5% after Q4 earnings

On the BSE, the stock climbed 4.85 per cent to Rs 1,622.35 while the shares jumped 4.90 per cent to Rs 1,622.50 on the NSE. The company has emerged as the biggest gainer on the frontline indices.

Kotak Mahindra Bank reported a 25 per cent growth in its March quarter net profit at Rs, limited by a drop in the core income due to narrow interest margins.

On a standalone basis, its Q4 net profit grew 18 per cent to Rs 4,133 crore while consolidated net profit grew 22 per cent to Rs 18,213 crore.

Kotak Mahindra's core net interest income increased 13 per cent to Rs 6,909 crore on the back of a 20 per cent loan growth and a narrowing of the net interest margin to 5.28 per cent.

The rally in share prices comes after CEO Ashok Vaswani said during an analyst call that the RBI's order is likely to have minimal financial impact and could affect profit before tax (PAT) by about 3-4.5 billion rupees for FY25.

"We have received an order from the RBI which directs us to temporarily pause onboarding of new customers through our online and mobile banking channels and issuance of fresh credit cards. The Bank has taken measures for adoption of new technologies to strengthen its IT systems and will continue to work with RBI to swiftly resolve balance issues at the earliest. We want to reassure our existing customers of uninterrupted services, including credit card, mobile and net banking," India's central bank had said in its order.

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