The shares of India’s fourth-largest private sector bank by assets saw positive traction at the start of this week after SBI Mutual Fund increased its stake in the bank to 5%.
At 11:12 a.m., Kotak Mahindra Bank Ltd shares were trading at Rs 1,725 per share on the National Stock Exchange, up 0.32 percent from the previous close price. The company has a market valuation of Rs 3,43,077 crore.
According to the company filing, SBI Mutual Fund has acquired a net total of 21,57,984 equity shares of Kotak Mahindra Bank Ltd under its various schemes, resulting in its stake exceeding 5% of the company’s paid-up share capital.
The final holding of SBI Mutual Fund now stands at 99,682,468 shares, representing 5.0143% of the company’s paid-up share capital.
As of the March quarter, SBI Mutual Fund held a 3.70% stake in the company, equivalent to 73,564,986 equity shares.
Kotak Mahindra Bank is a diversified financial services group that provides retail banking, treasury and corporate banking, investment banking, stock brokerage, vehicle finance, advisory services, asset management, life insurance, and general insurance.
Over the past year, Kotak Mahindra Bank Ltd. has experienced a significant increase in its interest earnings, rising by 26% annually to Rs 15,156 crore in Q4FY24 from Rs 11,982 crore in Q4FY23. Additionally, the company has seen a 17% rise in net profit, growing from Rs 4,566 crore to Rs 5,337 crore during the same period.
In terms of broader financial metrics, the company has reported substantial growth in its Assets Under Management, which surged by 33% to Rs 5,60,140 crore in FY24 compared to Rs 4,20,880 crore in FY23.
In April 2024, SBI Mutual Fund became the largest shareholder, holding 9.24 crore shares of Kotak Mahindra Bank valued at Rs 15,000 crore, up from 7.52 crore shares valued at Rs 13,420 crore in March.
However, Kotak Mahindra Bank Ltd shares have declined by 5.3% over the past six months and have fallen by 8% over the last 12 months.
Additionally, the international brokerage firm, CLSA has raised the target price on the Kotak Mahindra to Rs 2,150.
Written by Omkar Chitnis
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