Kotak Mahindra Bank's Robust Quarterly Growth Amid Challenges

Kotak Mahindra Bank reported a 13% rise in quarterly profit, reaching Rs 5,044 crore, driven by its subsidiaries' performance. While standalone profit grew 5%, provisions limited gains. The bank experienced a rise in unsecured loan slippages, affecting margins. Asset quality improved, and deposit growth reached 16%.

Kotak Mahindra Bank has announced a 13% increase in profit during the September quarter, totaling Rs 5,044 crore, propelled by strong performance from its subsidiaries.

Despite a standalone net profit surge of 5%, reaching Rs 3,344 crore, higher provisions somewhat hindered the growth. The bank's core net interest income saw an 11% upturn, driven by a 17% rise in advances and a slight narrowing of the net interest margin.

Ashok Vaswani, the bank's CEO, cited reverses in unsecured loans and restrictions from the Reserve Bank of India as factors impacting margins. Efforts are underway to tighten credit card underwriting, despite plans to grow in this sector. Asset quality showed improvement, with the gross non-performing assets ratio decreasing to 1.49%. Deposit growth was recorded at 16%, with a stable credit deposit ratio of 86%.

(With inputs from agencies.)