Kotak Mahindra Bank Shares Fall 4% Post Q3 Results; Valuation Concerns Raised

• Kotak Mahindra Bank shares dropped over 4% despite Q3 results broadly meeting expectations.
• Higher employee costs due to the new Labour Code led to lower-than-expected profit after tax (PAT).
• Net interest income (NII) grew 5% YoY, while Net Interest Margins (NIMs) remained flat QoQ at 4.54%.
• Asset quality improved with credit costs declining and slippage ratio improving.
• Brokerages like IIFL and Nomura flagged valuation concerns, while Jefferies recommended 'Buy'.

Why It Matters: Kotak Mahindra Bank's shares fell due to higher costs and flat NIMs, despite improved asset quality.