Kotak Mahindra Bank Q2 preview: NII may increase 10% to Rs 6,977 crore

Kotak Mahindra Bank will announce its Q2FY25 results on October 19.

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26 Aug, 2025 12:21

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Kotak Mahindra Bank is expected to report a 9.4 percent increase in its net profit year-on-year (YoY) to Rs 3,494 crore in Q2FY25, as per mean estimates of seven brokerage firms.

The lender is expected to report a 10 percent increase in Net Interest Income (NII) YoY to Rs 6,977 crore in the July-to-September quarter.

Kotak Mahindra Bank will announce its Q2FY25 results on October 19.

Net Interest Margins (NIMs) – NIMs are expected to decline by 3 basis points on a QoQ basis to 5.01 percent due to decrease in loan yields and flat cost of funds, says PL Capital.

Slippages - Slippages will remain elevated due to rising stress in unsecured retail loans including personal loan, cards, and micro-finance institution (MFI), said Emkay Institutional Equities. The brokerage firm said that even though agri-stress experienced in the April-to-June quarter is expected to partially ease in the July-to-September quarter, the stress in MFI space continues and could lead to higher slippages or lower recoveries.

Credit growth – Motilal Oswal Financial Services expects a 15.5 percent YoY increase in loan book for the lender, while deposits are expected to grow 16 percent YoY in Q2FY25. Sharekhan says that industry loan growth has moderated and is currently around 14 percent while the industry deposit growth remains at 11-13 percent. The brokerage firm said that credit growth is inching up gradually but due to slower deposit growth, banks are focusing on improving the LDR which is resulting in slower loan growth.

Key things to monitor - Growth outlook, especially on the trajectory of unsecured book.

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