Archive · 27 Oct 2025
Kotak Mahindra Bank Q2 Results: Loan Growth, NIM Decline
Kotak Mahindra Bank's Q2 results show mixed performance.
Loan growth was strong at 16% year-over-year.
Net Interest Margin (NIM) decreased by 11 bps.
Credit quality improved with lower slippage, and credit costs moderated.
Management anticipates NIM expansion in the next two quarters.
Analysts hold diverse views: some see room for valuation growth, while others are cautious.
Key focus areas include asset quality, retail CV book, and the growth in unsecured loans.
The bank is expected to see a turnaround.
Loan growth was 16% year-over-year.
Net Interest Margin (NIM) declined by 11 bps QoQ.
Slippages decreased QoQ, improving credit quality.
Operating expenses were well-controlled.
Management anticipates NIM expansion in the next two quarters.
- Who
- Kotak Mahindra Bank
- What
- Q2 Financial Results
- When
- Q2
- Where
- India
- Why
- To analyze financial performance
Concerns
Positive Outlook
ROE & Valuation
Concerns
Limited room for valuation re-rating; FY27E ROE is lower than peers.
Positive Outlook
Stable to improving NIM and normalization of asset quality, providing upside on NIM.
NIM and Margin
Concerns
NIM declined more than peers.
Positive Outlook
NIMs are expected to expand over the next two quarters, with a higher exit rate in 4Q.
- Loan Growth (YoY)
- 16%
- NIM Decline (QoQ)
- 11 bps
- Slippage Decline (QoQ)
- 10%
- CASA Ratio Increase (QoQ)
- 140 bps
- Credit Cost (of Avg Loans)
- 0.9%
- Highest Target Price
- Rs 2700
- Lowest Target Price
- Rs 2082
Sources
HDFC & Kotak Shine, IndusInd Stumbles: The big takeaways from Q2 bank results
Emkay Lowers Kotak Mahindra Bank Target to Rs 2,050 - Here's Why
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Kotak Mahindra Bank Q2 performance lagged peers; what's next for the stock?
Kotak Mahindra Bank shares in focus: Brokerages raise target price
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