Kotak Mahindra Bank Faces Profit Decline Amid Lending Stress

Kotak Mahindra Bank reported a 7.57% decline in net profit for the March quarter of FY2024-25, amid stress in its microlending segment and an embargo lifting. Despite this, core net interest income rose by 5%. The bank aims for significant credit growth, with subsidiary profits contributing 29% of overall profits.

Kotak Mahindra Bank has reported a decline of 7.57% in its consolidated net profit for the March quarter of FY2024-25, amounting to Rs 4,933 crore. The decline is primarily attributed to significant stress in the bank's microlending book.

The Reserve Bank's previously enforced embargo, which was lifted in February, also impacted financial results. Kotak Mahindra's standalone net profit saw a 14% decline, decreasing to Rs 3,552 crore from Rs 4,133 crore in the previous year.

While core net interest income rose by 5% to Rs 7,284 crore, customer asset growth stood at 13%. CEO Ashok Vaswani outlined the bank's aspirational goals for credit growth and enhanced profits from its subsidiaries, aiming for increased unsecured loan share despite current stress levels.

(With inputs from agencies.)