Kotak Mahindra Bank sees stress in retail commercial vehicles lending segment, says CEO Ashok Vaswani

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Kotak Mahindra Bank’s managing director and chief executive officer Ashok Vaswani on October 25 said the bank is seeing stress in the retail segment of the commercial vehicles loans.

“As far as CV is concerned, in the retail segment of CV, we have seen some stress. There were some anomalies in the marketplace introduced by GST, which, luckily, have been kind of sorted out with the recent changes,” Vaswani said during the post earning media call.

He added that the cashflows in the retail segment of commercial vehicles loans were not holding up and there were some other difficulties too. “In Q1 and Q2, we have not seen improvement and hence we are calling it out now.”

In the July-September quarter, advances of Commercial Vehicles and Commercial Equipment grew just 2 percent quarter-on-quarter to Rs 43,676 crore, while on a year-on-year basis, this segment grew 12 percent.

The advances in commercial vehicles and commercial equipment stood at Rs 39,064 crore in a year ago period and Rs 42,972 crore in a quarter ago period.

Further, on the life insurance business and broking business, the management has said that the reduction in the goods and services tax has had a big impact on the on the business.

“The big impact which has happened is the introduction of GST effective September 22, 2025. And as per the calculations of the fresh business done from September 22 to the end of the month and on renewals, the impact has been close to about Rs. 165 crores,” management said.

For the capital market business, the growth was lower due to fall in volumes in the cash market and in derivatives market.