Kotak Mahindra Bank’s shares dropped by 5.68% after the bank reported a 14.07% decline in net profit for the fourth quarter of FY25, bringing it down to ₹3,551.74 crore compared to the same period last year. Despite the profit fall, the bank’s total income rose by 9.33% year-on-year to ₹16,712.23 crore. Profit before tax dropped by 12.21% to ₹4,562.82 crore from ₹5,197.83 crore in Q4 FY24. Net Interest Income (NII) increased by 5% to ₹7,284 crore, with the Net Interest Margin (NIM) at 4.97%. Operating profit remained largely flat at ₹5,472 crore, while fees and services income saw a 6% rise to ₹2,616 crore. The bank’s customer base grew to 5.3 crore, up from 5 crore a year ago.
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Customer assets, including loans and credit substitutes, grew by 13% YoY to ₹4,77,855 crore, with advances reaching ₹4,44,316 crore. On the asset quality front, the gross non-performing asset (GNPA) ratio improved to 1.42% from 1.50% in December 2024, while the net NPA ratio fell to 0.31% from 0.41%. Slippages, or new bad loans, rose to ₹1,488 crore from ₹1,305 crore in the same quarter last year, and the provision coverage ratio remained strong at 78%. The bank reported a capital adequacy ratio of 22.2% and a CET1 ratio of 21.1%, with a return on assets (ROA) for the quarter at 2.19% (annualized).
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On a consolidated basis, the bank’s net profit fell by 7.57% to ₹4,932.76 crore. The consolidated ROA stood at 2.73%, and return on equity (ROE) was 12.90%. The bank also maintained a healthy liquidity position with an average liquidity coverage ratio of 135%. Its net worth rose to ₹1,57,395 crore, which includes gains from the RBI’s new investment valuation rules and the sale of Kotak General Insurance. Total assets under management (AUM) increased by 20% YoY to ₹6,69,885 crore, with domestic mutual fund equity AUM growing 27% to ₹3,13,084 crore. The board has proposed a dividend of ₹2.50 per share for the financial year, pending shareholder approval. Kotak Mahindra Bank, the flagship of the Kotak Group, operates across various financial segments including vehicle financing, consumer and corporate loans, investment banking, and asset management through its subsidiaries.
