Kotak Mahindra Bank has reported its financial results for the second quarter of FY25, with the management revealing that 30-40% of slippages during the quarter stemmed from its credit card portfolio. This is attributed to the RBI embargo, which has impacted the growth of the bank’s credit card book.
Despite these challenges, the bank reported a healthy growth in its core financials. The Net Interest Income (NII) for Q2 FY25 stood at ₹7,020 crore, marking an 11% year-on-year (YoY) increase from ₹6,297 crore in Q2 FY24. The bank maintained a strong Net Interest Margin (NIM) of 4.91%, reflecting the efficiency of its lending operations.
Other Key Financial Highlights:
- Fees and services income: ₹2,312 crore (up 14% YoY)
- Operating profit: ₹5,099 crore (up 11% YoY)
- Customer assets: ₹4,50,064 crore (up 18% YoY)
- Advances: ₹4,19,108 crore (up 17% YoY)
Kotak Mahindra Bank’s asset quality remained stable, with the Gross NPA (GNPA) ratio at 1.49% and the Net NPA (NNPA) ratio at 0.43%. The CASA ratio stood at 43.6%, and the bank continued to exhibit strong capital adequacy with a ratio of 22.6% and a CET1 ratio of 21.5%.
As of September 30, 2024, the bank’s customer base grew to 5.2 crore, underscoring its expanding market presence, despite the ongoing challenges in the credit card segment.
