Kotak Mahindra Bank Q4 results: Consolidated net profit down 7.5% Y-o-Y

On a standalone basis, the bank's net profit was down 14% Y-o-Y in Q4

Private sector lender Kotak Mahindra Bank reported a 7.5 per cent year-on-year (YoY) drop in consolidated profit after tax to Rs 4,933 crore in the January–March quarter of the financial year 2024-25 (Q4FY25).

 

In the full year, consolidated net profit stood at Rs 22,126 crore, up 21.5 per cent Y-o-Y, because of one-time gain of Rs 3,013 crore from divestment in Kotak General Insurance (pre-tax gain was Rs 3,803.40 crore). Excluding the gain, the consolidated net profit was up 5 per cent Y-o-Y to Rs 19,113 crore in FY25.

 

On a standalone basis, which represents the banking operations, the net profit was down 14 per cent Y-o-Y to Rs 3,552 crore in Q4FY25, due to a significant rise in provision and contingencies.

 

 

The bank’s net interest income (NII) was up over 5 per cent Y-o-Y to Rs 7,284 crore, while other income was up about 7 per cent Y-o-Y to Rs 3,182 crore.

 

Its net interest margin stood at 4.97 per cent in Q4FY25, down compared to 5.28 per cent in the corresponding period a year ago.

 

Provisions and contingencies jumped 245 per cent in Q4FY25 to Rs 909 crore compared to Rs 264 crore in the corresponding period a year ago and Rs 794 crore in Q3FY25.

 

The lender reported fresh slippages of Rs 1,488 crore in Q4FY25, up 14 per cent Y-o-Y, but down 10 per cent sequentially (over Q3FY25).

 

The bank’s asset quality improved sequentially, with the gross non-performing assets (GNPA) ratio at 1.42 per cent at the end of March 31, 2025, compared to 1.50 per cent at the end of December 31, 2024.

 

Net NPA ratio during this period stood at 0.31 per cent, down from 0.41 per cent at the end of December 2024.

The bank’s customer assets, which comprises advances and credit substitutes, increased by 13 per cent Y-o-Y to Rs 4.78 trillion in Q4FY25. Advances reported a 13 per cent Y-o-Y increase to Rs 4.44 trillion in Q4FY25; average advances grew 18 per cent Y-o-Y in FY25.

 

Its average total deposits grew 15 per cent Y-o-Y to Rs 4.68 trillion. The current account savings account (CASA) ratio as at March 31, 2025, stood at 43 per cent compared to 42.3 per cent as at December 31, 2024 and 45.5 per cent a year ago.

 

The bank’s credit to deposit ratio stood at 85.5 per cent at the end of March 31, 2025, compared to 87.4 per cent at the end of December 2024 and 83.8 per cent a year ago.

 

The bank’s board has recommended a dividend of Rs 2.50 per equity share for the year ended March 31, 2025, subject to approval of shareholders.

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(Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)