India Kotak Mahindra Bank's Q4 profit drops more than expected on higher provisions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 03 2025
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Source: Reuters
Quarterly Profit Decline: Kotak Mahindra Bank reported a 14% drop in quarterly profit to 35.52 billion rupees, primarily due to a tripling of provisions for potential bad loans, despite solid loan growth and an increase in deposits.
Asset Quality and Interest Margin: The bank's gross non-performing assets ratio improved slightly to 1.42%, while net interest income rose by 5%. However, the net interest margin decreased to 4.97%, reflecting pressures from external benchmark-linked loans amidst a falling interest rate environment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
