Kotak Mahindra Bank edges higher in volatile trade after announcing Q2 results

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Kotak Mahindra Bank gained 2.6% to Rs 682.55 at 14:00 IST on BSE after net profit rose 28.11% to Rs 569.50 crore on 63.94% rise in total income to Rs 4621.38 crore in Q2 September 2015 over Q2 September 2014.

The bank announced results during market hours today, 30 October 2015.

Meanwhile, the BSE Sensex was down 47.95 points, or 0.18%, to 26,790.19.

High volumes were witnessed on the counter. On BSE, so far 3.06 lakh shares were traded in the counter, compared with an average volume of 1.19 lakh shares in the past one quarter.

The stock was volatile. At the day's high of Rs 693.30, the stock rose 4.47%. At the day's low of Rs 662.50, the stock declined 0.16%, so far during the day. The stock hit a record high of Rs 744.45 on 21 July 2015. The stock hit a 52-week low of Rs 532.33 on 19 November 2014.

The large-cap private sector bank has equity capital of Rs 915.55 crore. Face value per share is Rs 5.

Kotak Mahindra Bank said Q2 results include operations of erstwhile ING Vysya Bank which got merged with the bank. Hence, the results are not comparable with that of the corresponding period of the previous year.

On absolute basis, Kotak Mahindra Bank's gross non-performing assets (NPAs) stood at Rs 2655.38 crore as on 30 September 2015, compared with Rs 2421.77 crore as on 30 June 2015 and Rs 1165.40 crore as on 30 September 2014. The ratio of gross NPAs to gross advances stood at 2.35% as on 30 September 2015 as against 2.31% as on 30 June 2015 and 1.89% as on 30 September 2014. The ratio of net NPAs to net advances stood at 1.05% as on 30 September 2015 as against 1.04% as on 30 June 2015 and 1% as on 30 September 2014.

Provisions and contingencies jumped 228.79% to Rs 176.40 crore in Q2 September 2015 over Q2 September 2014.

The Kotak managment believes the merger benefits with ING Vysya Bank will flow in due course from both, revenue synergies as well as cost efficiencies, resulting from significant geographical and product complementarities, fuller customer segment coverage, economies of scale and improved productivity and efficiency.

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