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(Reuters) - India's Kotak Mahindra Bank slid 5.5% on Monday after the lender's fourth-quarter results fanned concerns over higher credit costs and softer loan growth.
The lender reported a bigger-than-expected drop in profit on Saturday, mainly hurt by higher provisions for bad loans.
Analysts at Investec called Kotak's loan growth of 13% "a tad softer", while BofA analysts said the loan growth momentum was a "key disappointment."
BofA also downgraded Kotak Mahindra Bank's stock to "neutral".
Meanwhile, Bernstein analysts said Kotak saw yet another quarter of higher credit costs, which was a key surprise, especially as its peers reported stable or improving credit costs.
The stock was the top loser on the benchmark Nifty 50, which was trading 0.6% higher, and also on the Nifty bank index, which was flat.
The session's fall trimmed the stock's year-to-date gains to about 16%, which is still roughly double the 8.3% increase in the Nifty bank index.
(Reporting by Kashish Tandon in Bengaluru; Editing by Savio D'Souza)