Particle.news
Download on the App Store

Kotak Bank Profit Slips as NIM Narrows and Provisions Jump, Shares Drop

Management guides for margin improvement over the next two quarters driven by deposit repricing alongside CRR benefits.

Overview

  • Kotak Mahindra Bank’s standalone net profit fell about 2.7% year on year to roughly Rs 3,253 crore, with consolidated profit down around 11% to Rs 4,468 crore.
  • Net interest margin came in at 4.54%, down about 11 basis points quarter on quarter, even as net interest income rose 4% year on year to Rs 7,311 crore.
  • Provisions increased roughly 43.5% year on year to about Rs 947 crore, weighing on earnings despite healthy loan growth of around 16% to Rs 4.62–4.63 lakh crore.
  • Asset quality improved quarter on quarter with gross NPA near 1.39–1.40% and net NPA at about 0.32%, while gross slippages moderated to roughly Rs 16.3 billion.
  • The stock fell about 2–3% in early trade as brokerages issued mixed views, with Jefferies and Motilal Oswal raising targets, while Investec, Nomura and Emkay stayed cautious on valuations and margin trajectory.