Latest news with #AshokVaswani
Time of India
3 days ago
- Business
- Time of India
Kotak Bank net profit dips 40% year-on-year to Rs 4,472cr in Q1
MUMBAI: Kotak Mahindra Bank on Saturday reported a 40% year-on-year fall in net profit to Rs 4,472.2 crore for the quarter ended June 2025, primarily due to a one-time gain last year when the bank bookedRs 3,803 crore from the sale of a 70% stake in its general insurance arm to Zurich Insurance. Without the previous quarter's one-time gain, the consolidated net profit would have been 1% higher this quarter. Consolidated net interest income for the quarter rose 7.6% to Rs 9,719 crore, from Rs 9,031.5 crore a year earlier. The rise was driven by an 8.9% increase in interest earned, mainly from higher income on advances and investments, even as interest expended rose 10.6%. The bank's slippages rose 22% to Rs 1,812 crore during the quarter, particularly in unsecured and microfinance loans. "We could not issue any credit cards last year due to the RBI embargo, so outstandings declined. We resumed issuance in Q1 this year but it takes time to ramp up. We have launched new products like Solitaire and relaunched the IndiGo card. I am confident we are back on a positive trajectory. It is a key business for us, and we are focused on growing it," said Ashok Vaswani, MD and CEO. He said that the bank's digital app 811 was also seeing good traction after being relaunched, with many customers being acquired digitally. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 days ago
- Business
- Time of India
Kotak Mahindra Q1 profit flat at Rs 4,472 crore as provisions, credit costs rise
Kotak Mahindra Bank reported flat growth in consolidated net profit in the June quarter at ₹4,472 crore, as provisions linked primarily to microfinancing advances shot up, credit costs spiked, and margins shrank. The Mumbai-based bank, with the fourth highest Nifty weighting among lenders, had reported a net profit of ₹4,435 crore in the corresponding period last year. At a standalone level, profit was ₹3,282 crore in the June quarter, down 7% on year. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Design Thinking Data Science Degree Healthcare Technology Leadership Finance Others Project Management Operations Management Data Analytics CXO Management PGDM others Product Management MCA Public Policy MBA Data Science Cybersecurity Artificial Intelligence healthcare Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details "There have been some speed bumps," Ashok Vaswani, MD & CEO, Kotak Mahindra Bank, told ET during the post-earnings media call. "In the microfinance business, we started seeing stress in the third quarter of last year. This Q1 (June quarter) we believe, is the peak and in Q2, it will start coming down. This quarter, the retail part of commercial vehicles is clearly showing some stress. We will work through it." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gold Is Surging in 2025 — Smart Traders Are Already In IC Markets Learn More Undo Net interest income (NII) was up 6% YoY to ₹7,259 crore, versus ₹6,842 crore, in the same period last year. Net interest margin shrank 37 bps to 4.65% versus 5.02% in the same quarter last year. One basis point is a hundredth of a percentage point. Provisions and contingencies more than doubled from last year to ₹1,208 crore versus ₹578 crore last year. Asset quality also deteriorated with gross non-performing asset ratio increasing to 1.48% versus 1.39% a year ago.
Time of India
17-07-2025
- Business
- Time of India
HDFC Bank CEO highest paid banker in FY25; takes home Rs 12 crore - check how much other top bank bosses got
Top executives at India's private banks saw only modest increases in their FY25 pay packages, as the Reserve Bank of India maintained strict oversight on CEO compensation, with salaries, bonuses, and stock options requiring prior regulatory approval as part of a wider effort to ensure transparency and restraint, according to an ET report. Here is how much some of the bosses made over the last financial year. Sashidhar Jagdishan, HDFC Bank's managing director and CEO, emerged as India's highest-paid banker in the financial year 2024–25, with a total salary exceeding Rs 12 crore, marking a 12% rise from the previous year. Additionally, he was also granted 212,052 shares in employee stock options (ESOPs), which, based on current market prices, valued at over Rs 42 crore. Ashok Vaswani of Kotak Mahindra Bank, was paid Rs 13 crore, along with 18,580 ESOPs worth more than Rs 4 crore, according to an ET report. Amitabh Chaudhry, CEO of Axis Bank, drew a salary of Rs 9.11 crore, down 5.4% year-on-year. He received over 259,429 stock options, currently worth more than Rs 30 crore. Meanwhile, IDFC First Bank's V Vaidyanathan earned Rs 5.54 crore, a 4.5% increase from last year, and was allotted more than 24,20,626 stock options valued close to Rs 18 crore. ICICI Bank's Sandeep Bakhshi was paid Rs 9.96 crore in FY24, but the latest year's compensation figures are yet to be released. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
09-07-2025
- Business
- Time of India
Kotak Mahindra Bank aims asset growth at up to 2x India's nominal GDP: CEO Ashok Vaswani
Kotak Mahindra Bank aims to grow its assets at 1.5 to 2 times India's nominal GDP, Managing Director and CEO Ashok Vaswani said in the private lender's latest annual report. Brokerage firm Jefferies recently projected India's nominal GDP growth to slow to 9% in FY26. 'From a risk appetite perspective, we target to grow assets at 1.5 to 2 times nominal GDP growth,' Vaswani stated. 'In FY2024-25, our average advances grew by 18%, in line with our risk appetite, and average deposits by 16%, ensuring a balanced customer growth franchise.' Vaswani noted that the Reserve Bank of India 's technology embargo primarily impacted the bank's consumer business, while a broader downturn in the microfinance sector affected its commercial banking operations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Newcastle Upon Tyne: If You Were Born Between 1945-1974 You Could Be Eligible For This British Seniors Read More Undo 'Our Corporate Bank remained resilient and delivered growth for the Bank. Within the Commercial Bank, our Tractor Finance business was a standout performer, achieving a market share of 11.5%,' he said. Looking ahead, Vaswani flagged challenges arising from the expected decline in interest rates. 'As we move into the current year, managing the business through a regulatory repo rate cut cycle and identifying avenues for sustainable growth are key challenges that lie ahead,' he added. Live Events He also highlighted the impact of a turbulent global environment, saying, 'The heightened geo-political tensions and a rapidly evolving, volatile global economic order are new realities, compelling countries—including India—to realign.' Despite these challenges, he underscored the resilience of the Indian economy, which expanded by 6.5% in FY25. Growth picked up in the second half, supported by the RBI's accommodative measures, including interest rate reductions and liquidity infusions. As per the annual report, the total consolidated assets of Kotak Mahindra Bank stood at Rs 8.79 lakh crore at the end of FY25. Total advances stood at Rs 4.86 lakh crore while deposits were at Rs 4.94 lakh crore. Number of customers of the bank was upwards of 5.3 crores.
Time of India
05-05-2025
- Business
- Time of India
What caused 14% degrowth in Kotak Mahindra's quarterly profit? Ashok Vaswani explains
Ashok Vaswani , MD & CEO, Kotak Mahindra Bank , acknowledges challenges in the microfinance sector during recent quarters. Kotak Mahindra Bank has launched new mobile banking apps after an embargo. The bank prioritizes sustainable growth, aiming for 1.5 to 2 times nominal GDP growth. Kotak Mahindra Bank emphasizes prudence and avoiding excessive risk. Explain the 14% degrowth in the quarterly profit? What is the reason for that? Ashok Vaswani: The fundamental issue has been around the microfinance business. That is a business which has over the years delivered very good results for us. In Q3 and Q4, it has obviously been very difficult. This is an industry-wide issue and the losses have obviously kind of overwhelmed really well. And the good news is during the quarter, we got a technology embargo and then we have got exciting plans as we go ahead. You talked about the embargo. Now that problem is away, what is your plan for FY26? How will it help and what is your target now? Ashok Vaswani: The whole idea was to utilise the time when we were under embargo not only just to fix the basics around resilience, capacity planning, and all that kind of good stuff, but we rethought the entire go-to-market strategy from a digital perspective. Coming out of the embargo, we have launched the new mobile banking app for the Kotak customer as well as new apps for the 811 customers. Both these apps are being very well taken up by customers and they are unique to that particular customer segment. So, we can make it really targeted, which is what has been my mantra, customer segmentation, customer focus, and how you build propositions for that customer and that is what we are going to continue to do. So, whether it is 811, the mobile app, whether it is platforms for our corporate customers which we have invested in so that we can get much better payment solutions, whether it is in Kotak Securities with our new app and how customers can do much more or investments for our average banking customers on our Cherry app – we are going very strongly ahead with our technology efforts. Live Events You Might Also Like: Kotak Mahindra Bank Q4 results: PAT drops 14% YoY, NII up 4% You have maintained that you plan to grow 1.5 to 2 times of nominal GDP growth in loan growth . Going ahead in this financial year, will you continue with that plan which means the growth which is there this year can be slightly better or will there be some pressure? Ashok Vaswani: This is more of a risk appetite statement. If you are growing very aggressively beyond two, two-and-a-half times normal GDP growth, you are obviously taking additional risks. My goal is to build a sustainable franchise which our customers are very proud of. That requires me to do it with prudence and not take any shortcuts. So, what we are saying is from a prudent statement and not taking on too much risk, we believe one-and-a-half to two times nominal GDP growth is a good thing. Now, there may be certain circumstances, like we come across a particular acquisition or there are some areas which we have never done before which we want to go into which will grow, but the guiding principle is 1.5-2 times, exceptional circumstances may apply. And similarly for deposit growth how do you assess this fiscal year? Ashok Vaswani: Last fiscal year, at least the first three quarters were tough because market liquidity was tough and saw the entire banking system kind of struggle with deposit growth. Q4 became much easier. Into this fiscal year, we are seeing liquidity easing by the RBI which obviously bodes well. I think repo rates are going to have a pretty significant impact. On the capital market side, as we have seen last year, in the first half, capital markets were doing exceptionally well, so everybody was channeling their savings into the capital markets. How capital markets behave out into this fiscal year is to be seen. You Might Also Like: Personal loans & credit card stress has moderated, but microfinance pain persists', Kotak CEO Vaswani says IndusInd Bank raises FD interest rates on select tenures and Kotak Mahindra Bank reduces FD rate on select tenures
