Kotak Bank net profit dips 40% year-on-year to Rs 4,472cr in Q1

MUMBAI: Kotak Mahindra Bank on Saturday reported a 40% year-on-year fall in net profit to Rs 4,472.2 crore for the quarter ended June 2025, primarily due to a one-time gain last year when the bank bookedRs 3,803 crore from the sale of a 70% stake in its general insurance arm to Zurich Insurance. Without the previous quarter’s one-time gain, the consolidated net profit would have been 1% higher this quarter.Consolidated net interest income for the quarter rose 7.6% to Rs 9,719 crore, from Rs 9,031.5 crore a year earlier. The rise was driven by an 8.9% increase in interest earned, mainly from higher income on advances and investments, even as interest expended rose 10.6%. The bank’s slippages rose 22% to Rs 1,812 crore during the quarter, particularly in unsecured and microfinance loans.“We could not issue any credit cards last year due to the RBI embargo, so outstandings declined. We resumed issuance in Q1 this year but it takes time to ramp up. We have launched new products like Solitaire and relaunched the IndiGo card. I am confident we are back on a positive trajectory. It is a key business for us, and we are focused on growing it,” said Ashok Vaswani, MD and CEO. He said that the bank’s digital app 811 was also seeing good traction after being relaunched, with many customers being acquired digitally.