Kotak Mahindra Bank reported a 40% drop in net profit for the April–June quarter of 2025, with profits standing at ₹4,472.2 crore. This sharp decline is mainly because the bank had a one-time gain last year, when it earned ₹3,803 crore from selling a 70% stake in its general insurance business to Zurich Insurance.
If we don’t count that one-time gain, the bank’s profit this year would actually be 1% higher compared to last year.
Net Interest Income—the money the bank earns from lending after paying interest to depositors—grew 7.6% to ₹9,719 crore, compared to ₹9,031.5 crore a year ago. This increase came from higher income on loans and investments, although the bank also paid more interest to customers, which rose by 10.6%.
However, the bank also saw a rise in bad loans (slippages) by 22%, amounting to ₹1,812 crore, mostly in unsecured and microfinance loans.
CEO Ashok Vaswani shared that Kotak couldn’t issue credit cards last year due to a Reserve Bank of India (RBI) restriction. That led to a drop in credit card balances. But the bank has resumed credit card issuance this year and launched new products like the Solitaire and re-launched the IndiGo card. He is optimistic about future growth in this area.
Read more: IDFC First Bank Posts 32% Fall in Q1 Profit to Rs 462.6 Cr
The bank’s digital banking app ‘811’ is also performing well after being updated, with more customers joining through digital channels.
In summary:
- Profit fell 40% due to last year’s one-time insurance deal.
- Net interest income rose due to higher loan earnings.
- Bad loans increased, especially in unsecured lending.
- Credit card business is reviving after last year’s pause.
- The bank’s digital efforts are gaining traction.
This shows Kotak Bank is focusing on long-term growth, even if short-term numbers seem lower.
Also See: Nephroplus Plans ₹2,000 Cr IPO with ₹353.4 Cr Fresh Issue, Backed by BVP and Investcorp
