Archive · 26 Jul 2025
Kotak Mahindra Bank Reports Q1 Earnings, Sees MFI Stress Peaking
Kotak Mahindra Bank believes the worst of its problems with microfinance loans are over.
They expect things to get better, meaning they won't lose as much money from bad loans.
However, loans for things like trucks are still causing issues because of the economy.
The bank's personal loan business is doing well, and they've started issuing credit cards again.
Although profits are down compared to last year, the bank is looking forward to improvement in the coming months.
Kotak Mahindra Bank expects microfinance (MFI) stress to have peaked in the June quarter.
The bank anticipates credit costs to decrease from Q2 as asset quality improves.
Retail commercial vehicle (CV) loans saw increased credit costs due to economic factors.
Personal loan business continues to grow, and credit card portfolio issuance has restarted.
Net profit for the June quarter was ₹3,281.7 crore, a decrease of 57.5% year-over-year.
- Who
- Kotak Mahindra Bank.
- What
- Kotak Mahindra Bank's financial performance and outlook.
- When
- During the June quarter of the fiscal year, with expectations for the second quarter.
- Where
- India
- Why
- To understand the bank's current financial health and future prospects.
Bank Performance
Economic Impact
Loan Portfolio Health
Bank Performance
Management sees the worst of microfinance stress ending.
Economic Impact
Increased credit costs in retail commercial vehicles due to economic headwinds.
- Net Profit (June Quarter)
- ₹3,281.7 crore
- YoY Net Profit Change
- -57.5%
- Gross NPA
- 1.48% of total loans
- Net NPA
- 0.34%
- Deposit Growth (YoY)
- 15%
- CASA Ratio
- 40.9%
