India's Kotak Mahindra Bank, RBL Bank slump as loan stress hurts Q2 earnings
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's shares slid as much as 6% to a near two-month low in early trade, while those of RBL tumbled 14% to their lowest since June 2023. Kotak's slippages, or the proportion of good loans turning bad, jumped 38% on-quarter for the July-September period, while mid-sized lender RBL's slippages were 10.26 billion rupees, almost doubling from a year ago and up nearly 43% from the prior quarter.
