Stocks

Kotak Mahindra bank scrip under pressure after investor call highlights higher risks

Our Bureau Mumbai | Updated on April 01, 2020 Published on April 01, 2020

Shares of private sector Kotak Mahindra Bank fell sharply in intra-day trade on BSE, after the lender spoke about concerns over lower recovery due to the three month moratorium and chances of default in an investor call.

The bank’s scrip, which fell by over 10 per cent earlier in the day on Wednesday, showed some recovery and was trading 9.32 per cent lower at ₹1,175.50 a piece on BSE in the afternoon.

Kotak Mahindra Bank is the fourth largest private sector lender in the country. In an analyst call, it said there could be higher slippages if the lockdown for stopping the spread of coronavirus continues for more than three months. However, in an optimistic scenario, it expects normalcy to return in about two months’ time if the virus is contained in 15 to 30 days.

The bank said it was seeing some problems in unsecured personal loans such as credit cards and consumer durables from at least some sections of customers.

Published on April 01, 2020

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