India's Kotak Mahindra Bank drops on worries over higher credit costs, soft loan growth
May 5 (Reuters) - India's Kotak Mahindra Bank (KTKM.NS), opens new tab slid 5.5% on Monday after the lender's fourth-quarter results fanned concerns over higher credit costs and softer loan growth.
The lender reported a bigger-than-expected drop in profit on Saturday, mainly hurt by higher provisions for bad loans.
Analysts at Investec called Kotak's loan growth of 13% "a tad softer", while BofA analysts said the loan growth momentum was a "key disappointment."
BofA also downgraded Kotak Mahindra Bank's stock to "neutral".
Meanwhile, Bernstein analysts said Kotak saw yet another quarter of higher credit costs, which was a key surprise, especially as its peers reported stable or improving credit costs.
The stock was the top loser on the benchmark Nifty 50 (.NSEI), opens new tab, which was trading 0.6% higher, and also on the Nifty bank index (.NSEBANK), opens new tab, which was flat.
The session's fall trimmed the stock's year-to-date gains to about 16%, which is still roughly double the 8.3% increase in the Nifty bank index.
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