Kotak Mahindra Bank’s Q2 profit underwhelms as provisions climb sharply

Kotak Mahindra Bank reported September-quarter standalone net profit of ₹32.53 billion, down year-on-year and below street estimates, as loan-loss provisions jumped about 43% to ₹9.47 billion. Net interest income rose roughly 4% to ₹73.11 billion, while the net interest margin moderated to 4.54% from 4.91%. Asset quality showed a mild improvement with the gross NPA ratio at 1.39%. Management flagged focus on calibrated growth in unsecured retail, alongside vigilance on credit costs as the rate cycle and competitive dynamics pressure margins.