Kotak Bank, a private sector bank has reported a consolidated profit after tax of Rs 627 crores for the Q1 2014. While net profits were largely in line with expectations, the increase in gross and net non performing assets surprised analysts.
Gross non performing assets rose to 1.58 per cent from 1.27 per cent in the previous quarter, while net NPAs rose to 0.80 per cent to 0.55 per cent.
Shares of the bank were down 3 per cent after the disappointing set of numbers, particularly NPAs. Kotak is the second private sector bank after HDFC Bank to report rising NPAs, which should worry the banking sector.