Kotak Mahindra Bank

Kotak Mahindra Bank (KMB), on a standalone basis, reported 14% decline in Net Profit to Rs 3551.74 crore in the quarter ended March 2025 (Q4FY2025) over the corresponding quarter of last year. The bank has exhibited improvement in asset quality, while improved its net interest margins (NIMs) on sequential basis in Q4FY2025. NIMs of the bank have improved to 4.97% in Q4FY2025 compared with 4.93% in the previous quarter and eased from 5.28% in the corresponding quarter last year.
The cost-to-income rate was slightly up at 47.71% in Q4FY2025 from 47.24% in the previous quarter and rose from 44.76% in the corresponding quarter last year. The credit cost (NPA provisions as an annualized percentage of loans) increased to 0.73% in Q4FY2025 from 0.45% in Q4FY2024. The bank exhibited some moderation in loan growth to 13% at end March 2025. The business growth of the bank also eased to 12% at end March 2025.

On consolidated front, the bank has reported 8% decline in the Net Profit to Rs 4932.76 crore for the quarter ended March 2025, down from Rs 5337.20 crore in the quarter ended March 2025. NII increased 7% to Rs 9612.35 crore, while other income declined 18% to Rs 10402.49 crore. The operating profit improved 4% to Rs 7491.37 crore in the quarter ended March 2025. Provisions and contingencies have jumped 158% to Rs 1140.27 crore, while the effective tax rate was steady at 22.71% in Q4FY2025, compared with 22.6% in Q4FY2024.

Asset quality improves: The bank has improved the asset quality on consolidated as well as standalone basis, in the quarter ended March 2025.

On standalone basis, GNPA ratio has improved to 1.42% and NNPA ratio to 0.31% at end March 2025.

The fresh slippages of loans eased to Rs 1488 crore in Q4FY2025 from Rs 1657 crore in the previous quarter and remained high from Rs 1305 crore in the corresponding quarter last year.

The recoveries and upgrades of NPAs was at Rs 747 crore and write-offs of NPAs was Rs 873 crore in Q4FY2025.

The restructured loan book of the bank declined to Rs 200 crore of 0.05% of the loan book end March 2025.

The SMA-2 category loans of the bank also dipped to Rs 116 crore at end March 2025 from Rs 208 crore a quarter ago and Rs 199 crore a year ago.

Capital Adequacy ratio under Basel III including profits stood at 22.20% with the Tier I of 21.10% at end March 2025.

Standalone Asset Quality Indicators: Kotak Mahindra Bank
'	Mar-25	Dec-24	Sep-24	Jun-24	Mar-24	Variation		'
						QoQ	YoY	'
Gross NPA (Rs Crore)	6133.85	6266.25	6033.17	5477.15	5274.78	-2	16	'
Net NPA (Rs Crore)	1343.44	1680.98	1723.83	1376.33	1270.57	-20	6	'
% Gross NPA	1.42	1.50	1.49	1.39	1.39	-8	3	'
% Net NPA	0.31	0.41	0.43	0.35	0.34	-10	-3	'
% PCR	78.00	73.00	71.00	75.00	75.90	500	210	'
% CRAR - Basel III	22.25	22.79	22.60	22.41	20.55	-54	170	'
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Consolidated Asset Quality Indicators: Kotak Mahindra Bank
'	Mar-25	Dec-24	Sep-24	Jun-24	Mar-24	Variation
						QoQ	YoY
Gross NPA (Rs Crore)	7112.28	7218.17	6834.74	6251.42	6002.53	-1	18
Net NPA (Rs Crore)	1751.55	2070.42	2066.51	1688.80	1567.08	-15	12
% Gross NPA	1.45	1.51	1.48	1.39	1.38	-6	7
% Net NPA	0.36	0.44	0.45	0.38	0.36	-8	0
% CRAR - Basel III	22.25	22.79	22.61	22.41	20.55	-54	170
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Business Highlights: Standalone Business Highlights

The business level of the bank increased 12% yoy to Rs 925964 crore at end March 2025. The deposits moved up 11% to Rs 499055 crore, while advances increased 14% to Rs 426909 crore at end March 2025. The credit-deposit ratio eased to 85.54% at end March 2025 from 87.40% a quarter ago.

Segment wise, Corp & Business Banking recorded loan growth of 6% to Rs 92779 crore, CV/CE 17% to Rs 43008 crore, Agriculture Division 1% to Rs 28059 crore, Tractor Finance 13% to Rs 17815 crore, Home Loans & LAP 19% to Rs 127025 crore, Consumer Bank WC (Secured) 19% to Rs 42797 crore, PL, BL and Consumer Durables 24% to Rs 24818 crore, and SME 31% to Rs 35754 crore end March 2025 over March 2025. However, the credit cards loan book declined 7% to Rs 13420 crore

The CASA deposits ratio improved on sequential basis to 42.96% at end March 2025 from 42.33% a quarter ago, while declined from 45.51% a year ago. The cost of saving account deposits declined to 3.79% at end March 2025 from 3.92% at end December 2024 and 4.13% at end March 2024.

The bank has added 80 branches and reduced 42 ATMs in the quarter ended March 2025. The branch and ATMs network of the bank stood at 2148 branches and 3295 ATMs at end March 2025.

Book Value per share of the bank stood at Rs 589.2 per share at end March 2025. Adjusted book value (net of NNPA and 10% of restructured advances) stood at Rs 582.3 per share at end March 2025.

Consolidated Business Highlights

Total assets of the bank increased 15% to Rs 879774 crore at end March 2025. Consolidated customer assets increased 12% to Rs 537860 crore at end March 2025.

Book Value per share stood at Rs 791.6 per share at end March 2025, while adjusted book value (net of NNPA) stood at Rs 782.8 per share at end March 2025.

Consolidated Quarterly Performance:

On the consolidated front, the bank has reported 8% decline in the net profit at Rs 4932.76 crore, with the NII growth of 7% to Rs 9612.35 crore in the quarter ended March 2025. Non-interest income declined 18% to Rs 10402.49 crore and net total income fell 8% to Rs 20014.84 crore in the quarter ended March 2025. The expense ratio was lower at 62.6%, while the tax rate was steady at 22.7% in the quarter ended March 2025.

Kotak Prime has reported 23% yoy improvement in the net total income at Rs 759 crore for Q4FY2025, while net profits rose 33% to Rs 297 crore. Total customer asset moved up 16% yoy to Rs 40123 crore at end March 2025. Car advances constituting 83.3% of the total customer assets increased 12% to Rs 33421 crore. Asset quality was stable with %NNPA at 1.00% at end March 2025 from 1% at end December 2024.

Kotak Mahindra Life Insurance has reported -3% decline in the gross premium collection to Rs 7239 crore in Q4FY2025. PAT dipped -33% to Rs 73 crore in Q4FY2025. Solvency ratio eased to 2.45% in Q4FY2025 against 2.56% in Q4FY2024.

Kotak Securities has reported PAT at Rs 348 crore in Q4FY2025, exhibiting -8% decline from Rs 378 crore in Q4FY2024. Total income moved up 8% to Rs 1315 crore. Market share declined to 8.8% at end March 2025 from 9.1% a quarter ago and 10.2% a year ago.

Kotak Mahindra Capital has reported a net profit of Rs 96 crore, against Rs 97 crore in the corresponding quarter last year. AUM increased 20% to Rs 669885 crore at end March 2025 over March 2025.

Kotak Mahindra AMC and Trustee Co reported 27% surge in Average AUM at Rs 487155 crore in the quarter ended March 2025. The net profit of the company jumped 143% to Rs 364 crore in Q4FY2025.

Standalone Financial Performance - FY2025:

For the year ended March 2025 (FY2025), the bank posted 19% jump in the net profit to Rs 16450.08 crore. The net interest income increased 9% to Rs 28341.78 crore, while the non-interest income improved 11% to Rs 11422.49 crore in FY2025. Expense ratio rose sharply to 47.2% in FY2025 compared to 46.0% in FY2024. The provision and contingencies declined 87% to Rs 2942.36 crore FY2025. The profit before tax was flat at Rs 18068.21 crore in FY2025. The effective tax rate was higher at 28.4% in FY2025 compared to 23.5% in FY2024. The bank has registered gains of Rs 3515.9 crore on 70% stake in its subsidiary Kotak Mahindra General Insurance Company, which boosted the bottomline of the bank. Net profit increased 19% to Rs 16450.08 crore in FY2025.

Consolidated Financial Performance - FY2025:

For the year ended March 2025 (FY2025), the bank posted 21% surge in the net profit to Rs 22125.99 crore. The net interest income improved 11% to Rs 37394.28 crore, while non-interest income declined 2% to Rs 37407.27 crore in FY2025. Expense ratio was lower at 61.2% in FY2025 compared to 64.0% in FY2024. The provision and contingencies jumped 96% to Rs 3859.24 crore in FY2025. The profit before tax rose 6% to Rs 25185.63 crore in FY2025. The effective tax rate was higher at 28.0% in FY2025 compared to 24.7% in FY2024. The net profit increased 21% to Rs 22125.99 crore in FY2025 after gains from stake sale in Kotak Mahindra General Insurance Company.

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Kotak Mahindra Bank: Standalone Results
Particulars	2503 (3)	2403 (3)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	13529.77	12307.06	10	52919.73	45798.91	16
Interest Expended	6246.20	5397.71	16	24577.95	19805.71	24
Net Interest Income	7283.57	6909.35	5	28341.78	25993.20	9
Other Income	3182.46	2978.29	7	11422.49	10273.10	11
Net Total Income	10466.03	9887.64	6	39764.27	36266.30	10
Operating Expenses	4993.83	4426.08	13	18753.70	16678.85	12
Operating Profits	5472.20	5461.56	0	21010.57	19587.45	7
Provisions & Contingencies	909.38	263.73	245	2942.36	1573.73	87
Profit Before Tax	4562.82	5197.83	-12	18068.21	18013.72	0
EO	0.00	0.00	-	3515.90	0.00	-
PBT after EO	4562.82	5197.83	-12	21584.11	18013.72	20
Provision for Tax	1011.08	1064.53	-5	5134.03	4232.14	21
PAT	3551.74	4133.30	-14	16450.08	13781.58	19
EPS*(Rs)	71.5	83.2	'	70.1	69.3	'
Adj BV (Rs)	582.3	479.5	'	582.3	479.5	'
* Annualized on current equity of Rs 994.13 crore. Face Value: Rs 5 , Figures in Rs crore,
Source: Capitaline Corporate Database

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Kotak Mahindra Bank: Consolidated Results
Particulars	2503 (3)	2403 (3)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	16771.93	15156.18	11	65668.83	56236.63	17
Interest Expended	7159.58	6212.16	15	28274.55	22567.24	25
Net Interest Income	9612.35	8944.02	7	37394.28	33669.39	11
Other Income	10402.49	12751.15	-18	37407.27	38037.28	-2
Net Total Income	20014.84	21695.17	-8	74801.55	71706.67	4
Operating Expenses	12523.47	14478.10	-14	45756.68	45870.82	0
Operating Profits	7491.37	7217.07	4	29044.87	25835.85	12
Provisions & Contingencies	1140.27	442.05	158	3859.24	1972.47	96
Profit Before Tax	6351.10	6775.02	-6	25185.63	23863.38	6
EO	0.00	0.00	-	3803.40	0.00	-
PBT after EO	6351.10	6775.02	-6	28989.03	23863.38	21
Provision for Tax	1442.16	1532.77	-6	7043.29	5886.55	20
PAT Before Minority Interest	4908.94	5242.25	-6	21945.74	17976.83	22
Share of minority interest'	0.00	0.00	-	0.00	0.00	-
Share in profits of associates	23.82	94.95	-75	180.25	236.38	-24
PAT	4932.76	5337.20	-8	22125.99	18213.21	21
EPS*(Rs)	99.2	107.4	'	97.5	91.6	'
Adj BV (Rs)	782.8	645.5	'	782.8	645.5	'
* Annualized on current equity of Rs 994.13 crore. Face Value: Rs 5 , Figures in Rs crore,
Source: Capitaline Corporate Database

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