Promises
1 promise
Promise Tracker
0 delivered, 0 close, 1 missed.
View Promises →Kotak Mahindra Bank Limited — Q2 FY26
Kotak Mahindra Bank reported a standalone PAT of INR 3,253 crore for Q2 FY26, with NIM at 4.54% and credit costs declining to 79 bps from 93 bps QoQ.
neutral
medium
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
Kotak Mahindra Bank reported a standalone PAT of INR 3,253 crore for Q2 FY26, with NIM at 4.54% and credit costs declining to 79 bps from 93 bps QoQ. Advances grew 16% YoY and deposits 15% YoY, with CASA ratio improving to 42.3%. The bank maintained strong capital adequacy (CET1 20.9%). Key drivers included stabilization in unsecured credit costs (personal loans normalized, MFI improving, credit cards plateauing) and cost control (OpEx flat YoY). However, stress persists in retail CV and rural segments. Management expects gradual NIM improvement from deposit repricing and further moderation in credit costs in H2. Risks include potential further repo rate cuts, elevated stress in CV, and slower-than-expected unsecured book rebuild.
कोटक महिंद्रा बैंक ने दूसरी तिमाही (जुलाई-सितंबर 2025) में 3,253 करोड़ रुपये का शुद्ध लाभ कमाया। ब्याज से कमाई का अनुपात (NIM) 4.54% रहा, और खराब कर्ज पर हुए नुकसान की लागत (क्रेडिट कॉस्ट) घटकर 0.79% हो गई। कर्ज (लोन) में 16% और जमा में 15% की सालाना बढ़ोतरी हुई। बैंक की मजबूत पूंजी (CET1 20.9%) है। व्यक्तिगत लोन और माइक्रोफाइनेंस में सुधार हुआ, लेकिन कमर्शियल वाहन (CV) और ग्रामीण क्षेत्रों में तनाव बना हुआ है। प्रबंधन को उम्मीद है कि आने वाले महीनों में ब्याज दरों में कटौती से NIM में सुधार होगा और क्रेडिट कॉस्ट और कम होगी। जोखिम: CV क्षेत्र में दबाव और कर्ज वसूली में धीमापन।
Promises0 met · 1 missedRisks3 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
3 risks
Risk Intelligence
Retail CV stress persists
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
CASA Ratio
42.3%
+260bps YoY
CASA ratio improved to 42.3% as of Sep 30, driven by granular growth in low-cost deposits.
Credit Cost
79 bps
-14bps QoQ
Credit costs declined to 79 bps from 93 bps in Q1, led by improvement in credit card and MFI portfolios.
Gross NPA Ratio
1.39%
-9bps QoQ
Gross NPA ratio improved to 1.39% from 1.48% in Q1, with slippages lower at INR 1,629 crore.
Unsecured Advances Share
9.2%
-300bps YoY
Unsecured advances as a share of total advances declined to 9.2% from ~12% a year ago due to deliberate de-risking.
What Changed vs Last Quarter
NEW
NIM gradual improvement in H2
Management expects NIM to improve gradually in H2 FY26 as deposit repricing benefits flow through, assuming no further repo rate cuts.
NEW
Credit costs to gradually moderate in H2
Credit costs are expected to continue moderating in H2, with personal loan normalized, MFI improving, and credit cards stabilizing.
NEW
Unsecured book rebuild focus
Management aims to gradually rebuild the unsecured retail book (credit cards, personal loans) with disciplined underwriting, targeting growth in coming quarters.
DROPPED
NIM stabilization expected in H2 FY26
Management expects NIM to stabilize in the second half of the year as deposit repricing and CRR cuts offset asset yield drag, assuming no further repo rate cuts.
DROPPED
MFI credit costs to decline from Q2
Microfinance credit costs have peaked in Q1 and are expected to show a declining trend in coming quarters as fresh disbursements resume cautiously.
DROPPED
Credit card costs to decline in H2
Credit card credit costs have plateaued and should start declining in the second half of the year.
DROPPED
Retail unsecured target of 15% of advances
Aspirationally, the bank aims to grow retail unsecured advances to 15% of total advances, from current 9.7%, through MFI, personal loans, and credit cards.
NEW RISK
Further repo rate cuts could pressure NIM
If the RBI cuts rates further, NIM improvement may be delayed as deposit repricing benefits could be offset.
NEW RISK
Slow unsecured book rebuild
Credit card book declined 7% despite embargo lift; management is cautious on ramping up, which may delay revenue growth.
RISK GONE
MFI runoff may increase loss rates
An analyst questioned whether the bank's runoff mode in microfinance could reduce borrowers' willingness to pay, potentially leading to higher loss rates. Management acknowledged the risk but expressed confidence in new underwriting models.
RISK GONE
Economic slowdown could impact SME portfolio
An analyst flagged that economic growth is a key variable for MSME debt servicing. Management said they are monitoring closely but noted the portfolio is secured and holistic customer view helps.
RISK GONE
NIM may bottom only in Q2
The full impact of the June repo rate cut will be felt in Q2, and NIM may bottom out only then before recovering in H2. This was highlighted in Q&A.
🤫 Topics management stopped discussing
Mentioned in Q3 FY25, Q4 FY25
Management reiterated its philosophy to grow advances at 1.5 to 2 times nominal GDP growth, targeting sustainable franchise building.
Mentioned in Q1 FY26, Q2 FY25
Microfinance credit costs have peaked in Q1 and are expected to show a declining trend in coming quarters as fresh disbursements resume cautiously.
Mentioned in Q3 FY25, Q4 FY25
Management noted uncertainty whether microfinance industry changes are cyclical or structural, which could require business model changes.
Mentioned in Q1 FY25, Q3 FY25
Management could not provide a timeline for lifting the embargo, which continues to restrict credit card issuance and digital onboarding.
Mentioned in Q1 FY25, Q1 FY26
Aspirationally, the bank aims to grow retail unsecured advances to 15% of total advances, from current 9.7%, through MFI, personal loans, and credit cards.
Fast read
Guidance and risk preview
Management expects NIM to improve gradually in H2 FY26 as deposit repricing benefits flow through, assuming no further repo rate cuts.
Stress in the retail commercial vehicle segment continues, with management expecting elevated credit costs for a few more quarters.
View Risks →