How do you see Kotak Bank after the fall in profits reported in the Mar-20 quarter?

Kotak Mahindra Bank reported 10% lower net profits of Rs.1267 crore for the Mar-20 quarter. The main reason was that the provisions shot up 6-fold to Rs.1047 crore in the fourth quarter. This included general provision of Rs.650 crore for COVID-19. Kotak Bank reported 7% growth in advances at Rs.219,748 crore while deposits grew 16% at Rs.262,821 crore. There was marginal improvement in asset quality during the Mar-20 quarter. Gross NPAs were lower by 21 basis points at 2.25% while net NPAs were also 18 bps lower at 0.71%. The fall in profits and the rampant risks may make the stock a tad expensive. Traders and investors should wait for lower levels to enter the stock.