It was not a surprise that the bank chose to take a hit on its net profit by setting aside ₹1047 crore provisions including ₹650 towards specific risks arising out of the covid-19 pandemic Kotak Mahindra Bank does not want to leave anything to chance during a crisis.
Ergo, it has covered its entire bad loan stock with provisions and is armed with enough liquidity to lend to worthy borrowers.
It was not a surprise that the bank chose to take a hit on its net profit by setting aside ₹1047 crore provisions including ₹650 towards specific risks arising out of the covid-19 pandemic.
Net profit missed market estimates but investors seem to have largely ignored it. The message from the bank’s chief Uday Kotak was simple: protecting the balance