Kotak Mahindra Bank's Q1 Financial Performance

Kotak Mahindra Bank has reported a significant 40% year-on-year decline in net profit for the quarter ended June 2025, totaling Rs 4,472.2 crore. This downturn is primarily attributed to the absence of a one-time gain from the previous year, where the bank realized Rs 3,803 crore from the sale of a 70% stake in its general insurance arm to Zurich Insurance.

Consolidated Net Interest Income Shows Growth

Despite the profit dip, the bank's consolidated net interest income saw a 7.6% increase, reaching Rs 9,719 crore from Rs 9,031.5 crore the previous year. This growth was fueled by an 8.9% rise in interest earned, despite a 10.6% increase in interest expended.

Challenges and Strategic Moves

The quarter also witnessed a 22% rise in slippages, particularly in unsecured and microfinance loans. Ashok Vaswani, MD and CEO, highlighted the bank's efforts to rebound, including the relaunch of its digital app 811 and the introduction of new credit card products like Solitaire and the IndiGo card, aiming to regain momentum in this key business area.