Kotak Mahindra Bank dips 6% post Q1 earnings

NIMs dip to 4.7% in June 2012 quarter, as against 5% in the previous corresponding period

Kotak Mahindra Bank is trading lower by 3% at Rs 562, extending its yesterday 3% fall after reporting a fall in net interest margins (NIMs) at 4.7% in the quarter ended June 30, 2012, as against 5% as on June 30, 2011.

The private sector bank has reported a 12% year-on-year(y-o-y) growth, a slowest in past three years, at Rs 282 crore for Q1FY13 due to higher provisioning towards advances and receivables. Provisioning towards advances and receivables were at Rs 52 crore in the Q1 FY13 against Rs 13 crore in the year-ago period.

Net interest income (difference between interest earned and interest expended) increased by 27% to Rs 721 crore during the quarter as compared with Rs 568 crore in Q1 FY12.

A combined 467,415 shares have changed hands on the counter so far on the NSE and BSE.