Kotak Mahindra Bank reported a 10.22% increase in consolidated net profit for Q3 FY25, reaching Rs 4,701 crore compared to Rs 4,265 crore the previous year. Despite this growth, the profit marks a dip from Rs 5,044 crore in the preceding quarter. The standalone profit also showed an uptick, reaching Rs 3,304 crore, although this is down from Rs 3,343 crore in the previous quarter. The bank's total income rose to Rs 16,050 crore from Rs 14,096 crore, while expenses increased to Rs 10,869 crore from Rs 9,530 crore. Gross non-performing assets slightly increased from 1.49% to 1.50%, with provisions rising to Rs 794 crore, significantly above the previous year’s Rs 579 crore.

Simultaneously, both Kotak and RBL Bank are grappling with rising defaults in the microfinance sector. Kotak's microfinance arm, BSS, reported a loss of Rs 50 crore this quarter, contrasting with a profit of Rs 104 crore from the same quarter last year. According to Indiatimes, RBL's reported net profit plummeted by 86%, leading to doubled provisions amid challenges from joint liability group loans.

On a broader scale, during the last week, the market capitalization of six of the top ten valued firms declined by Rs 1.71 lakh crore. Major players like Infosys and Tata Consultancy Services experienced significant valuation drops, indicating a challenging market environment. Indiatimes highlighted that Infosys' valuation decreased by Rs 62,948.4 crore, emphasizing the tough conditions for participants in the IT and banking sectors.

As Kotak Mahindra Bank aims for a steady recovery, the interplay of profit growth and rising default risks within the microfinance segment creates a complex landscape for financial institutions. For further details on these developments, visit Indiatimes.