Synopsis:
In a significant block deal on August 7, approximately 1.1 crore shares of Kotak Mahindra Bank, representing 0.55% equity, exchanged hands for Rs. 2,134 crore. The bank recently reported Q1FY26 results that fell short of Street expectations.
A block deal worth Rs. 2,134 crore involving 1.1 crore shares of Kotak Mahindra Bank was executed at Rs. 1,974 per share. This comes a day after reports suggested a major shareholder planned to offload a similar stake. Meanwhile, the bank’s Q1FY26 net profit declined sharply YoY, missing analyst estimates, and asset quality saw moderate deterioration.
With market capitalization of Rs. 3,96,157cr, the shares of Kotak Mahindra Bank are currently valued at Rs. 1,992.10 per share, from its last closing of Rs. 2,002.40 per share.
News
On Thursday, August 7, around 1.1 crore shares of Kotak Mahindra Bank, amounting to 0.55% of the lender’s equity, were traded in a block deal worth Rs. 2,134 crore at a price of Rs. 1,974 per share. The identities of the buyer and seller involved in the transaction are yet to be disclosed.
This development follows a CNBC-TV18 report a day earlier, which stated that a shareholder was preparing to offload 1.05 crore shares of the bank. The floor price for the proposed deal was set at Rs. 1,955 per share, valuing the total deal at Rs. 2,066 crore. JP Morgan was reported to be the broker facilitating the transaction.
Separately, Kotak Mahindra Bank’s Q1FY26 financial results revealed a net profit of Rs. 3,281.7 crore, falling short of Street expectations pegged at Rs. 3,442 crore, and significantly lower than Rs. 6,250 crore reported in the same quarter last year a 57.5% YoY decline.
The bank’s net interest income (NII) for the June quarter stood at Rs. 7,249 crore, a 6.1% YoY increase, closely aligned with the estimated Rs. 7,293 crore. However, asset quality showed signs of pressure, with gross NPAs rising to Rs. 6,637.7 crore (1.48%) from Rs. 6,134 crore (1.42%) sequentially. Net NPAs also increased to Rs. 1,531 crore (0.34%) from Rs. 1,343 crore (0.31%).
About the company
Kotak Mahindra Bank is a diversified financial services group providing a wide range of banking and financial services including Retail Banking, Treasury and Corporate Banking, Investment Banking, Stock Broking, Vehicle Finance, Advisory services, Asset Management, Life Insurance and General Insurance.
The company has shown strong profitability, with a Return on Capital Employed (ROCE) of 8.17% and a Return on Equity (ROE) of 15.4%. It has also delivered a robust profit growth of 20.8% CAGR over the last five years, indicating consistent performance and efficient capital utilization.
Written by Manideep Appana
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