Analyst Concall
Kotak Bank expects NIM to bottom out in Jul-Sept
This story was originally published at 19:51 IST on 26 July 2025
Register to read our real-time news.Informist, Saturday, Jul. 26, 2025
Please click here to read all liners published on this story
--Kotak Bank: Expect retail unsecured loan book to be below 15%
--Kotak Bank: More card product launches lined up
--Kotak Bank: NIM to bottom out in Jul-Sept
--Kotak Bank: Fall in cost of funds to offset earnings loss in next 3-4 qtrs
--Kotak Bank: Agri-MSME portfolio will remain a focus area
--CONTEXT: Comments by Kotak Bank mgmt in post-earnings analysts call
--Kotak Bank: 811 app saw good engagement after RBI lifted embargo
By Vaishali Tyagi and Cassandra Carvalho
MUMBAI – Kotak Mahindra Bank's net interest margin is expected to bottom out in Jul-Sept, the private sector lender's senior management said in a post-earnings conference call with analysts Saturday. The bank's net interest margin moderated to 4.65% in Apr-Jun from 4.97% a quarter ago.
"We expect our retail unsecured loan book to be below 15%," the management said. According to the bank's investor presentation, unsecured retail advances as a share of net advances were 9.7% as of June end, lower from the quarter-ago figure of 10.5%, and also lower than 11.6% as of June 2024.
Kotak Mahindra Bank is also gearing up to launch more card products in the coming quarters as the lender sees its credit cards business showing robust growth going forward as it recovers from the restrictions imposed by the Reserve Bank of India last year.
"We have more card product launches lined up," the management said. The management added that the bank's digital platform, 811 application, has seen good engagement after the RBI lifted the embargo. In the quarter ended June, the bank has seen a 12% decline in its credit cards business to INR 129.24 billion. Sequentially, the credit business was down 4%.
Earlier Saturday, India's fourth-largest private sector lender reported a sharp fall of nearly 48% on year in net profit for the June quarter to INR 32.82 billion as provisions almost doubled from the corresponding quarter a year ago and due to sluggish growth in total income. On Friday, shares of the bank had closed 0.8% lower at INR 2,124.60 on the National Stock Exchange.
The management also said that a fall in the cost of funds would help offset earnings losses of the bank in the upcoming three to four quarters. The cost of funds decreased to 5.01% in Apr-Jun from 5.10% a year ago. For the bank, lending to agriculture and micro, small and medium enterprises will remain a focus area.
The bank attributed the stress in microfinance, retail, and commercial vehicle segment to rise in slippages. Fresh slippages during the June quarter were up 33.43% on year at INR 18.12 billion. End
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
