Kotak Mahindra Bank shares gain over 2 pc after Q2 results

Indusind Bank and its promoters denied the speculation, while Kotak Mahindra Bank (KMB) declined to comment. Indusind Bank shares closed higher by 1.46 per cent at Rs 616.30 on BSE.

Shares of Kotak Mahindra Bank on Monday rose by over 2 per cent after the company reported a 26.7 per cent increase in standalone net profit for the second quarter of 2020-21. The stock gained 2.36 per cent to close at Rs 1,415.75 on the BSE. During the day, it jumped 3.27 per cent to Rs 1,428.40.

At the NSE, it rose by 2.44 per cent to close at Rs 1,416.90. Kotak Mahindra Bank on Monday reported a 26.7 per cent jump in its standalone net profit to Rs 2,184.48 crore for the second quarter ended on September 30, 2020, compared to Rs 1,724.48 crore during the same quarter a year ago.

Total income (standalone) rose to Rs 8,288.08 crore in the July-September period as against Rs 7,986.01 crore in the year-ago period, Kotak Mahindra Bank said in a regulatory filing. The bank's asset quality improved on a net basis, with the non-performing assets (NPAs) falling to 0.64 per cent of the net advances as of September 30, 2020, from 0.85 per cent by September-end 2019.

Meanwhile, the deal street was abuzz with speculation about a merger between Kotak Mahindra Bank and smaller rival Indusind Bank late on Sunday in an all-stock deal. Indusind Bank and its promoters denied the speculation, while Kotak Mahindra Bank (KMB) declined to comment.

Indusind Bank shares closed higher by 1.46 per cent at Rs 616.30 on BSE. The stock jumped 4.20 per cent to a high of Rs 633 in day trade. The last big deal in the private sector banks space had involved KMB merging with ING Vysya Bank in an all-stock deal.

Watchers said a merger with the Hindujas Group-promoted Indusind Bank will help KMB on the retail front given the former's business mix. When contacted to confirm the speculation, Kotak Mahindra Group's chief communication officer Rohit Rao said, "We have no comments to offer." PTI SUM MR MR

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