Kotak Mahindra Bank surges on strong Q4 results, 1:1 bonus

The stock was up 4% at Rs 1,395 after reporting 29% yoy jump in its standalone net profit at Rs 527 crore in March quarter.

Kotak Mahindra Bank moved higher by 4% to Rs 1,395 on the NSE after reporting a better-than-expected 29% year-on-year jump in its standalone net profit at Rs 527 crore for the quarter ended March 2015 (Q4). The private sector lender had profit of Rs 407 crore in a year ago quarter.

Analysts, on an average, had expected profit of Rs 486 crore for the quarter.

Net interest income, the difference between interest earned and interest expended, grew by 16% to Rs 1,123 crore during January-March quarter against Rs 966 crore in the corresponding quarter of previous fiscal.

Asset quality has also improved with the gross non-performing assets (NPA) declined to 1.85% in March 2015 quarter from 1.98% in March 2014 quarter and 1.87% in December quarter. Net NPA too declined 0.92% from 1.08% in a year ago quarter and 0.97% in previous quarter.

Meanwhile, the board of directors of the bank approved issue of bonus shares in the ratio of 1:1 i.e. one equity share for every one share held subject to approval of the shareholders at the Annual General Meeting.

The stock opened at Rs 1,348 and hit a high of Rs 1,404 on the NSE after announcements of Q4 results. Till 1410 hours, a combined 1.96 million shares changed hands on the counter on the NSE and BSE.