Kotak Mahindra Bank News: In the third quarter of the current financial year 2025, October-December 2024, the profit of private sector bank Kotak Mahindra Bank increased by 10 percent on an annual basis. However, the bank’s credit card, personal loan and 811 digital banking businesses took a hit due to RBI restrictions in the December quarter. Regarding when the ban will be lifted, the bank says that talks are going on with RBI regarding this. Management said that most of the work has been completed, now RBI itself is doing the evaluation. However, the management said that the exact time cannot be given as to when the ban will be lifted.
How much impact will RBI restrictions have on Kotak Mahindra Bank?
In the analyst call, management said the unsecured book took a hit due to RBI restrictions on the bank’s digital operations. Earlier, unsecured book including credit cards, personal loans and microfinance had 15 per cent share in total assets but due to RBI action it came down to 10.5 per cent. According to the bank’s investor presentation, its credit card volume shrank by 2 per cent on a quarterly basis in October-December 2024, although personal loans and consumer durable lending showed a growth of 2-2 per cent during this period.
Kotak Mahindra Bank December quarter results
Kotak Mahindra Bank’s net profit in the December 2024 quarter jumped 10 percent year-on-year to Rs 4,702 crore. However, it declined by 7 percent on quarterly basis. Talking about net interest income, it jumped by 10 percent on annual basis to Rs 7,196 crore.
Talking about asset quality, gross NPA increased from 1.48 percent to 1.51 percent on quarterly basis. However, it has improved on an annual basis as the gross NPA in the December 2023 quarter stood at 1.68 percent. On a quarterly basis, net NPA improved from 0.45 percent to 0.44 percent. However, net NPA in the December 2023 quarter stood at 0.36 percent. Gross NPA fell to Rs 7,218.17 crore from Rs 6,834.7 crore quarter-on-quarter and net NPA fell to Rs 2,070.42 crore from Rs 2,066.51 crore in the December 2024 quarter.
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