Kotak Mahindra Bank stocks hit 10-week high: What's the reason?
What's the story
Shares of Kotak Mahindra Bank, one of India's top private sector banks, surged 4.26% to a 10-week high of ₹2,241 apiece today. The spike comes after the bank released its business update for the June quarter. The results showed a steady performance in deposit and loan growth despite moderation in low-cost deposits.
Financial performance
Loan book stands at ₹4.45L crore
The June quarter update from Kotak Mahindra Bank showed a 14% year-on-year (YoY) and 4.2% quarter-on-quarter (QoQ) growth in lending to ₹4.45 lakh crore. The bank's loan book stood at ₹4.27 lakh crore at the end of the March quarter, while it was ₹3.90 lakh crore in Q1 FY25. The bank also reported a healthy 14.6% growth in deposits, reaching ₹5.13 lakh crore during this period.
Deposits
Total deposits at ₹4.92L crore
On a sequential basis, deposits at Kotak Mahindra Bank grew 2.8% from ₹4.47 lakh crore at the end of March quarter to ₹5.13 lakh crore in June quarter. The average total deposits stood at ₹4.92 lakh crore, up nearly 13% YoY and 5% QoQ. The average CASA (current account savings account) deposits stood at ₹1.92 lakh crore, reflecting a YoY growth of 4.2% and a QoQ increase of 2.1%.
Stock growth
Stock has gained nearly 25% this year
Stocks of Kotak Mahindra Bank have witnessed a sharp rise this year, gaining almost 25% from ₹1,779 apiece to the current trading level of ₹2,229. The rally has added around ₹1.10 lakh crore to the company's market capitalization, which now stands at ₹4.43 lakh crore. In April, the stock hit an all-time high of ₹2,301.90, surpassing its previous record of ₹2,202.