Kotak Mahindra Bank is ready to lend cautiously

Kotak Mahindra Bank Ltd finally seems to have shed its inhibitions on lending, after being on the sidelines since the pandemic hit last year. Investors are thrilled that the bank’s shares rose more than 3% on Tuesday in response to the September quarter earnings.

The private sector lender reported 14.7% year on year growth in its loan book for the September quarter, more than double the growth in the previous quarter. Recall that in the June quarter, the bank had shrunk its loan book by 2.7% sequentially on concerns that credit risks outweigh the benefits of leading amid the impact of the second wave of the pandemic.

The loan book expanded by a stellar 8% sequentially for the September quarter. Kotak Mahindra Bank’s loan growth was broad- based, although the retail loan showed a faster growth rate of 20%.

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