Kotak Mahindra Bank Q3 Profit Rises 4.2%, Misses Market Estimates

Kotak Mahindra Bank reported a 4.2% rise in its standalone net profit for the third quarter ended December, supported by steady loan growth and lower provisions for potential bad loans on a sequential basis. India’s third-largest private lender by market capitalisation posted a profit of ₹34.46 billion, according to a Reuters report released on Saturday.

Despite the growth, the profit fell short of analyst expectations of ₹35.72 billion, as per LSEG data. Net interest income increased 5% year-on-year to ₹75 billion, while provisions and contingencies declined 15% quarter-on-quarter to ₹8.1 billion, though they were slightly higher compared to the same period last year.

Asset quality showed improvement, with the gross non-performing asset ratio easing to 1.3% at the end of December from 1.39% in the previous quarter. Net interest margins remained flat at 4.54%, even as recent interest rate cuts by the Reserve Bank of India continued to pressure margins due to faster transmission to lending rates than deposit rates.

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