Analysts in an ET Now poll had projected the profit figure at Rs 1,650 crore.
While retaining ‘Accumulate’ rating on Kotak Mahindra Bank, brokerage Nirmal Bang Securities revised the target price downward to Rs 1,757 (from Rs 1,781 earlier). “We cut estimates due to weak credit growth amid overall economic slowdown,” the brokerage house said.
Net Interest Income (NII) for the quarter increased 17 per cent to Rs 3,430 crore from Rs 2,926 crore.
BOB Capital Markets also cut the target price to Rs 1,875 (from Rs 1,950 earlier). “Kotak Mahindra Bank’s Q3FY20 PAT was below estimates due to weak NII growth and high provisions. Key disappointments were loan growth slipping to a multi-quarter low of 10 per cent YoY and 9MFY20 credit cost spiking to 67 basis points. Management has toned down its growth guidance from the mid-teens to 10-15 per cent YoY but believes credit cost for FY20 can be held around 60 basis points,” BOB Capital Markets said in a report.
The bank made provisions and contingencies of Rs 444 crore for the quarter compared with Rs 407.93 crore in the September quarter.
The scrip traded 0.25 per cent down at Rs 1,614 in the morning trade, while the benchmark BSE Sensex was down 31 points, or 0.07 per cent, at 41,498.
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