CORRECTED-UPDATE 1-India's Kotak Mahindra Bank Q2 profit rises nearly 15 pct, misses estimates

(Corrects year-ago net interest margin in fifth paragraph; updates shares)

Oct 24 (Reuters) - India’s Kotak Mahindra Bank Ltd posted a 14.8 percent rise in second-quarter net profit on Wednesday, boosted by higher interest and fee income, but missed analysts’ expectations.

Net profit rose to 11.42 billion rupees ($155.84 million) for the quarter ended Sept. 30, missing analysts’ average estimate of 11.65 billion rupees, according to I/B/E/S data from Refinitiv.

Asset quality was stable, with gross bad loans as a percentage of total loans standing at 2.15 percent at end-September, compared with 2.17 percent a quarter earlier and 2.47 percent a year earlier.

Interest earned climbed 22.1 percent to 58.11 billion rupees, with loans as of end-September growing 21 percent, the Mumbai-based private sector lender said in a statement here.

Net interest margin - the difference between interest paid and earned, a key gauge of profitability, fell to 4.2 percent from 4.4 percent a year earlier.

Kotak shares were down 1.1 percent after the results as of 0758 GMT. (Reporting by Chris Thomas in Bengaluru; Editing by Sunil Nair and Vyas Mohan)