Kotak Mahindra Bank shares slump nearly 7%; market valuation erodes by ₹24,801.79 crore

Shares of Kotak Mahindra Bank on Monday tanked nearly 7% after its September quarter earnings failed to cheer investors.

The stock tumbled 6.63% to ₹1,743 apiece on the BSE after a weak beginning to the trade.

On the NSE, it slumped 6.73% to ₹1,745.10 a share.

The company's market valuation eroded by ₹24,801.79 crore to ₹3,46,936.88 crore.

The stock was the biggest laggard among the BSE Sensex firms during the morning trade.

Kotak Mahindra Bank on Saturday posted a 13% growth in the September quarter profit to ₹5,044 crore, helped by the performance of its subsidiaries.

On a standalone basis, the private sector lender's net profit for the quarter grew 5% to ₹3,344 crore, limited by a jump in provisions.

The core net interest income grew 11% at ₹7,020 crore for the bank on the back of a 17% growth in advances and a 0.31% narrowing in the net interest margin at 4.91%.

The bank's Chief Executive Officer and Managing Director, Ashok Vaswani, said reverses in unsecured loans such as personal loans and credit cards and the embargo imposed by the Reserve Bank of India, making it difficult to add more new customers, impacted the margins.