Leading private sector banks like HDFC Bank had earlier reported an improved performance in the June 2025 quarter and investors were keenly awaiting the results of Kotak Mahindra Bank.
The Kotak Mahindra Bank stock ended Friday’s trade 0.8 % lower at Rs 2,125 and it is not too far from its 52-week high of Rs 2,301 that was reached on 22 April 2025.
Performance in the June 2025 quarter
For a key operational parameter net interest income (NIM), for Kotak Mahindra Bank it was 4.65% in the June 2025 quarter vis-à-vis 5% a year earlier. The central bank had cut repo rates in its last meeting in early June 2025, and while interest rates on bank loans / credit facilities have come down, interest rates on deposits with the bank come down with a lag.
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Similarly, for larger rival, HDFC Bank, its NIM was 3.5% on interest earning assets in the June 2025 quarter vis-à-vis 3.7% a year earlier. And for Axis Bank, its NIM was 3.8 % in the June 2025 quarter vis-à-vis 4.05 % a year earlier. Axis Bank had tightened its bad loan recognition policy in the June 2025 quarter and it affected its various operational parameters.
Meanwhile, Kotak Mahindra Banks advances grew 14 % y-o-y to Rs 4.4 lakh crore in the June 2025 quarter and that was faster than larger rivals. HDFC Bank’s advances grew by nearly 6.7 % y-o-y to Rs 26.28 lakh crore in the first quarter of FY26. Axis Bank’s advances grew by 8 % y-o-y to Rs 10.59 lakh crore in the first quarter of FY 26.
The asset quality of Kotak Mahindra Bank has remained fairly good – its % of net NPAs to net advances was 0.34 % in the June 2025 quarter vis-à-vis 0.35 % a year earlier. Similarly for HDFC Bank, its % of net NPAs to net advances was 0.47 % in the June 2025 quarter vis-à-vis 0.39 % a year. And for Axis Bank, the tighter NPA norms resulted in its % of net NPAs of 0.45 % in the June 2025 quarter vis-à-vis 0.34 % a year earlier.
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