Kotak Mahindra Bank shares tumbled over 5% on Monday after the private lender posted a sharp 47.5% year-on-year (YoY) drop in net profit for the quarter ended June 30, 2025 (Q1 FY26). As of 9:16 AM, the shares were trading 5.18% lower at Rs 2,014.50.
The bank reported a consolidated profit of ₹3,281.68 crore for the quarter, down from ₹6,249.82 crore in Q1 FY25, largely due to the absence of a one-time exceptional gain of ₹3,519.90 crore recorded in the same quarter last year.
Despite the profit decline, core business metrics remained steady. Net Interest Income (NII) rose 6% YoY to ₹7,259 crore, reflecting healthy lending activity and stable margins. Total income for the quarter stood at ₹16,916 crore, up from ₹15,675 crore a year ago.
Operating profit before provisions grew to ₹5,563.69 crore from ₹5,254.11 crore YoY. However, higher provisions and contingencies, which surged to ₹1,207.76 crore from ₹578.48 crore YoY, weighed on overall profitability.
Asset quality showed a slight deterioration sequentially. Gross NPAs rose to ₹6,637.70 crore (1.48%) from ₹5,477.15 crore (1.39%), while Net NPAs stood at ₹1,530.93 crore (0.34%) versus ₹1,376.33 crore (0.35%) in the previous quarter.
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