Kotak Mahindra Bank Q2 Results: Net profit below estimates as RBI ban, rise in NPA bite
Kotak Mahindra Bank reported a 5% year-on-year rise in standalone profit to Rs 3,344 crore in the quarter ended September 2024 from Rs 3,191 crore a year ago led by a 11% rise in net interest income even as margins fell and provisions for non-performing assets increased. The bank's profit was lower than the Rs 3424 crore expected by a Bloomberg poll of analysts.
Profit was helped by a 11% growth in net interest income (NII), or the difference between the interest earned on loans and that paid for deposits, led by a 17% growth in advances to Rs 4.19 lakh crore as at September 2024.
CEO Ashok Vaswani said the bank has seen some slowdown in rural banking, commercial vehicle, microfinance and consumer lending businesses but expressed hope that these businesses will bounce back starting with the festive season later this month.
The Reserve Bank of India's April 24 ban on the bank from onboarding new customers on its online and mobile banking channels, and issuing fresh credit cards continued to impact numbers as unsecured retail advances as a percentage of net advances fell to 11.3% from 11.6% a year earlier.
It would however be allowed to provide these services to its existing customers. Vaswani said the bank is «working hard» to fulfill its commitments to RBI.
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