Kotak Mahindra Bank shares decline nearly 4% after earnings announcement

New Delhi: Shares of private sector lender Kotak Mahindra Bank declined nearly 4 per cent in initial trade on Monday after the company's June quarter results failed to cheer investors.

The stock tanked 3.75 per cent to Rs 1,897.10 apiece on the BSE while it witnessed a similar movement on the NSE where it plunged 3.62 per cent to Rs 1,898.90 per piece.

It was the biggest laggard among the sensex and nifty components. The 30-share BSE sensex quoted 39.55 points or 0.06 per cent higher at 66,723.81 in the morning trade.

On Saturday, Kotak Mahindra Bank reported a massive 67 per cent on-year jump in standalone net income at Rs 3,452 crore for the June quarter.

On a consolidated level, the profit, which includes net gains from its brokerage/i-banking, ARC, wealth management and insurance businesses, grew 51 per cent to Rs 4,150 crore, the company said in a regulatory filing.

It's key net interest income increased 33 per cent to Rs 6,234 crore driven by 5.57 per cent higher net interest margin for the reporting quarter as the bank passed on the entire 250 basis points hike by the central bank to its customers while did not reprice the deposits proportionately, it added.