Kotak Mahindra Bank Q2: Profit Climbs 5 Per Cent As Lender's Asset Quality Improves

The bank logged a profit of Rs 3,344 crore in the July-September quarter in the 2024-25 fiscal year (FY25), against Rs 3,191 crore clocked in the same period a year earlier

Kotak Mahindra Bank reported a 5 per cent jump in its consolidated profit after tax in the second quarter of the current fiscal year on a year-on-year (YoY) basis. The bank logged a profit of Rs 3,344 crore in the July-September quarter in the 2024-25 fiscal year (FY25), against Rs 3,191 crore clocked in the same period a year earlier.

The lender’s net interest income for the quarter under review stood at Rs 7,020 crore, falling from Rs 6,297 crore reported in the second quarter in the preceding 2023-24 fiscal year (FY24).  NII is a reflector of interest earned by the bank after measuring the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors. The company in its official filings on Friday said that its net interest margin improved to 4.91 per cent in Q2FY25, from 5.22 per cent logged in the year-ago period.

The bank’s asset quality also improved in the quarter against the previous year. The Gross Non-Performing Assets (GNPAs) stood at 1.49 per cent or Rs 6,033.17 crore in the September quarter in the current fiscal year, against 1.72 per cent or Rs 6,087.23 crore reported in the year-ago period. The Net Non-Performing Assets (NNPAs) logged at 0.43 per cent or Rs 1,723.83 crore in Q2FY25, as compared to 0.37 per cent or Rs 1,274.81 crore in the same period a year earlier. NPAs are loans or advances issued by the bank which are subject to late repayment or unlikely to be repaid by the borrower in full.

The operating profit of the lender also climbed to Rs 5,099 crore in July-September quarter in the current fiscal year, rising 11 per cent against Rs 4,610 crore logged in the corresponding period last year.