Despite steady growth in credit and deposits, Kotak Mahindra Bank reported an 11% decline in consolidated net profit for Q2FY26 as a result of increased provisions. Regarding media allegations that Kotak Bank was expressing interest in purchasing IDBI Bank and had carried out due diligence, the bank’s CEO, Ashok Vaswani, remained reticent. “We cannot and should not be commenting on any items that could or could not be in process.” According to Vaswani, the bank wants to grow and will consider both inorganic and organic possibilities.
“As we are also expanding the business naturally, we assess every opportunity according to its strategic fit and its effect on managerial bandwidth. We evaluate financials and values if the overall result is favorable. We move forward if the strategic and value requirements are satisfied.
In Q2FY25, the consolidated profit after tax decreased from Rs 5,044 crore to Rs 4,468 crore. Customer assets surged 13% to Rs 576,339 crore, while consolidated assets under management jumped 12% to Rs 760,598 crore. At Rs 844, book value per share increased by 14%. The independent bank’s net profit dropped 3% to Rs 3,253 crore from Rs 3,344 crore in the previous year. “Credit costs have come down from 93 basis points to 79 basis points in line with our expectations…,”said Vaswani.
