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Informist, Saturday, Jul. 18, 2026

 

--Kotak Bank: Expect to maintain market share in commercial vehicle segment 

--CONTEXT:Comments by Kotak Mahindra Bk's mgmt in post-earnings analyst call 

--Kotak Bank: More cautious on unsecured business loan segment 

--Kotak Bank: One-time impact of ECL transition is less than 2% of net worth 

--Kotak Bank: Seeing encouraging start on FCNR(B) deposit mobilisation 

--Kotak Bank: Difficult to give guidance on NIM right now 

 

By Meera Nair and Pratiksha

 

MUMBAI/NEW DELHI – Kotak Mahindra Bank Ltd. expects to maintain its market share in the commercial vehicle financing segment as collections continue to improve, although the lender refrained from giving a growth guidance for the business. As for the June quarter, the bank said there was a slowdown sequentially, but going forward, an improvement in the segment mix would work in its favour.

 

"We have been consistently seeing improvements in our collections...slippages are reducing and we have been maintaining the pace of improvement quarter on quarter," Joint Managing Director Paritosh Kashyap said in a post-earnings analyst call.

 

On unsecured lending, the bank said it remained cautious on unsecured business loans in the June quarter because of stress seen in the small and medium enterprise segment, even as organic growth in personal loans had turned strong. 

 

"We have been a little more cautious because of whatever issues we are seeing on the SME side," Whole-time Director Anoop Saha said, adding that organic personal loan growth was now in double digits.

 

On the implementation of the expected credit loss framework, the bank said the one-time impact on its net worth would be less than 2%. "As an ongoing basis, we expect the credit cost to go up by about 12-15%," Group Chief Financial Officer Devang Dalal said.

 

The lender also said mobilisation of Foreign Currency Non-Resident (Bank) deposits has started on an encouraging note, although it is still assessing the pace of inflows and deployment opportunities. "There is a lot of customer demand from NRIs...it's an encouraging start. We should have a much better picture in the next month or so," Managing Director and Chief Executive Officer Ashok Vaswani said.

 

On margins, the bank reiterated that it was not providing any guidance given the changing interest rate environment. "There are multiple variables...constantly changing. So we would not like to provide any specific guidance on the NIM going forward," Dalal said. Vaswani clarified that the bank's earlier comments on margin pressure referred to the industry and not Kotak Mahindra Bank specifically, noting that the lender's adjusted net interest margin had remained broadly stable over the past few quarters.   

The bank reported a net profit of INR 41.23 billion on total income of INR 178.16 billion for the June quarter. On Friday, shares of the bank ended at INR 389.95 apiece on the National Stock Exchange, up over 3%.  End

 

Edited by Avishek Dutta

 

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