Kotak Mahindra Bank reported a net profit of ₹3,344 crore for the second quarter of fiscal year 2025, reflecting a 4.8% increase from the same period last year. This growth was supported by a steady expansion in the bank’s net interest income, which rose to ₹7,019.3 crore. The quarter’s results came amid a challenging macroeconomic environment marked by tightening monetary policy and increased credit competition in the banking sector.
The bank’s gross non-performing assets (NPA) ratio showed a stable trend, standing at 1.80% as of September 30, 2024, compared to 1.77% in the previous quarter. Similarly, the net NPA ratio remained flat at 0.55%. Kotak Mahindra Bank’s credit growth was driven by retail loans, which contributed to the overall growth in the loan book, supported by strong traction in segments such as personal loans, home loans, and vehicle finance.
The capital adequacy ratio of the bank was very strong at 21.1%, considerably above the regulatory requirement, underpinning the capacity of the bank to support future growth and deal with potential headwinds. The RoA stood at 2.5%, while RoE was recorded at 13.1%, indicating good profitability levels.
Its founder, Uday Kotak, has just stepped down as MD and CEO and has named Dipak Gupta the interim CEO. In fact, the succession and direction of strategy that this transition will take at this bank are being keenly watched by the market.
Announcements will be made on the updates about Kotak Mahindra Bank regarding Q2 results, including details about the financial performance and strategic initiatives.
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Source: Moneycontrol
News Desk
