Kotak Mahindra Bank shares slip nearly 2%, after a ₹2,134 crore block deal

CNBC-TV18 reported on Wednesday, citing sources from CNBC Awaaz, that a shareholder was set to sell 1.05 crore shares of Kotak Mahindra Bank.

Kotak Mahindra Bank's block deal had a floor price of ₹1,955 per share, marking a 2.4% discount from its latest closing price. Valued at around ₹2,066 crore, the deal accounts for nearly 0.5% of the bank’s total equity. JP Morgan, a global investment bank, is serving as the broker for the transaction.

Kotak Mahindra Bank reported a net profit of ₹3,282 crore for Q1FY26, reflecting an 8% decline from the previous quarter's ₹3,552 crore. On a year-on-year basis, profit comparison was skewed due to an exceptional gain of ₹3,520 crore in Q1FY25 from the sale of a 70% stake in Kotak Mahindra General Insurance to Zurich Insurance. Provisions more than doubled to ₹1,208 crore from ₹578 crore in the same period last year, while gross NPAs rose to ₹6,638 crore compared to ₹5,477 crore a year ago. Net NPA stood at 0.34%, slightly above the previous quarter’s 0.31%.

Despite the profit dip, the bank delivered strong operational performance with total advances growing 14% YoY to ₹4,44,823 crore. Within this, unsecured retail advances formed 9.7% of net advances, reflecting a cautious approach to retail credit. Average total deposits grew 13% YoY to ₹4,91,998 crore, led by a 19% rise in average term deposits and a 9% increase in current account deposits. Savings deposits rose modestly by 2%, while the CASA ratio remained healthy at 40.9% and term deposit sweep balances surged 23% YoY.

The bank’s credit-to-deposit ratio stood at 86.7%, supported by cost discipline with a 5.01% cost of funds. Operating profit rose 6% YoY to ₹5,564 crore, indicating sustained core earnings momentum. Customer base expanded to 5.4 crore from 5.1 crore in the year-ago period, underlining steady growth in customer acquisition.

Shares of Kotak Mahindra Bank ended ₹2,002.40 apiece on the NSE on Wednesday, August 6. The stock opened at ₹1,979.60 per share.

The company's market capitalisation stands at ₹3,94,000 crore.

The stock has declined by 0.52% in the last five days. Over the last one month, it has dropped by 7.81%. In the last six months, the stock has increased by 2.73%, while the year-to-date hike stands at 10.83%.