Shares of India's Kotak Mahindra Bank and RBL Bank slumped on Monday as the lenders reported a jump in bad loans that hurt their second-quarter profit and margins, a trend that could continue for a few more quarters.

Kotak Mahindra Bank's second quarter faced several challenges, including the Reserve Bank India's embargo and a weak macroeconomic environment.

Kotak Mahindra Bank shares fell over 4% to Rs 1,793.85 on NSE after the private sector lender's net interest margin (NIM) moderated 11 bps sequentially to 4.91% and card delinquencies drove an increase in slippage run-rate.

India's Kotak Mahindra Bank on Saturday reported a lower-than-expected 5% increase in July-September profit on higher loan provisions while lending margins shrank. The private lender's standalone net profit,

Kotak Mahindra Bank announced its acquisition of Standard Chartered Bank's Rs 4,100-crore personal loan portfolio, a strategic move aligning with its customer-centric growth focus. The transaction, expected to complete in three months,

Kotak Mahindra Bank shares dropped significantly on Monday, falling by over7% to hit a low of Rs 1,735 in early trade, after the private lender reported mixed Q2 FY25 earnings. At 1:02 pm, shares of the bank were down 5.18% to Rs 1,773 on the Bombay Stock Exchange (BSE).

Kotak Mahindra Bank shares dropped 7.2% to ₹1,735 after disappointing quarterly results. Analysts downgraded the target price on the stock amid concerns over unsecured portfolio stress and declining margins.

Kotak Mahindra Bank's Q2 earnings result was muted, leading to weak performance. According to Devang Gheewalla of Kotak Bank Ltd, the acquisition of Standard Chartered will help aid net interest margins (NIMs).