Kotak Mahindra Bank has announced its standalone financial results for the second quarter of FY25, revealing a slight increase in its Gross Non-Performing Assets (NPA) ratio on a quarter-on-quarter (QoQ) basis. The bank’s Gross NPA ratio rose to 1.47% in Q2 FY25, up from 1.33% in Q1 FY25.
Despite the rise in Gross NPAs, Kotak Mahindra Bank’s Net NPA ratio remained stable at 0.43%, reflecting the bank’s ongoing efforts in managing its asset quality and provisioning against potential risks. The total gross NPAs stood at ₹6,033.17 crore as of September 30, 2024, compared to ₹5,477.76 crore in the previous quarter.
The bank’s prudent approach to provisioning is further underscored by the increase in provisions, which amounted to ₹660.39 crore in Q2 FY25, up from ₹578.48 crore in the preceding quarter. This reflects the bank’s commitment to maintaining a strong balance sheet while navigating a challenging macroeconomic environment.
Kotak Mahindra Bank continues to demonstrate stability with a capital adequacy ratio of 22.61% under Basel III, ensuring it is well-positioned to absorb future credit risks.
The increase in Gross NPAs signals the bank’s vigilance in monitoring asset quality, while the steady Net NPA ratio indicates effective risk management practices in place.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a financial professional before making investment decisions.
