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Kotak Mahindra Bank First-Quarter Profit Slightly Misses Estimates

Kotak Mahindra's auto loans had negative growth in the quarter, Chief Financial Officer Jaimin Bhatt said at a post-earnings press conference in Mumbai.

Photo Credit : Bloomberg

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India's Kotak Mahindra Bank Ltd reported a 32.7% jump in first-quarter profit, but marginally missed estimates as loan growth slowed during the period.

Banks in Asia's third-biggest economy have faced challenges due to rising bad loans while slowing economic growth has brought fewer borrowers to avail credit.

Kotak Mahindra's auto loans had negative growth in the quarter, Chief Financial Officer Jaimin Bhatt said at a post-earnings press conference in Mumbai.

The private-sector lender's advances at the three months ended June 30 rose only 18%, compared with a rise of 24% a year ago, it said in a statement on Monday.

Net profit for the period rose to 13.60 billion rupees ($197.39 million), versus 10.25 billion rupees a year ago. Analysts on average expected a profit of 13.83 billion rupees, according to Refinitiv data.

Gross bad loans as a percentage of total loans, a measure of asset quality, came in at 2.19% by the end of June, versus 2.14% at the end of the March quarter and 2.17% in the same period a year ago.

Shares of Kotak Mahindra closed down 3% ahead of the results, while the broader NSE index ended 0.64% lower.

(Reuters)


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