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3d ago

Kotak Mahindra and IndusInd Bank Q1 Profits Plunge on Provision Surge

Compressed margins after July’s RBI rate cut coincided with doubled provisions for stressed microfinance and commercial vehicle loans, squeezing profits

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Overview

  • Kotak Mahindra Bank’s consolidated net profit fell to ₹4,472 crore in Q1 FY26 from ₹7,448 crore a year earlier as one-off gains vanished and core income reversed.
  • The bank more than doubled its provisions on advances to ₹1,200 crore, driven by stress in microfinance and retail commercial vehicle portfolios.
  • Kotak’s standalone net profit dropped 7% year-on-year to ₹3,282 crore and its shares plunged over 6% in response to the weak results.
  • IndusInd Bank’s net profit tumbled 72% to ₹604 crore as its net interest income slid 14% to ₹4,640 crore and margins narrowed.
  • IndusInd’s gross and net NPA ratios worsened to 3.64% and 1.12% respectively even as its shares rose about 2% and Motilal Oswal maintained a neutral view with an ₹830 target.