Kotak Mahindra Bank Q4 Results: Standalone profit falls 14% YoY to Rs 3,552 crore

Kotak Mahindra Bank reported a 14% year-on-year decline in standalone net profit for the January-March quarter on May 3. The private sector lender posted a standalone net profit of Rs 3,552 crore for Q4 FY25. 

Provisions and contingencies during the quarter rose more than threefold to Rs 909 crore, reflecting the bank's cautious approach to asset quality. 

Despite the spike in provisioning, Kotak’s asset quality improved marginally. Its gross non-performing asset (GNPA) ratio stood at 1.42% as of March 31, 2025 compared to 1.50% at the end of December 2024. 

Loan growth remained robust, with advances rising 13% year-on-year, while deposits grew 15% during the quarter. 

Additionally, its Net interest income (NII) increased 5% to Rs 7,284 crore. However, the bank’s net interest margin (NIM) contracted to 4.97% from 5.28% a year ago. Sequentially, NIM showed a slight improvement from 4.93% in the December quarter. 

The bank’s total income grew 6.8% YoY to ₹3,182.5 crore, while total expenditure surged 14.4% YoY to ₹11,240 crore. The lender’s net interest margin (NIM) stood at 4.96% for FY25 and 4.97% for Q4FY25. Average total deposits jumped 15% YoY to ₹4,68,486 crore in Q4FY25. 

On the asset quality front, gross NPA (GNPA) stood at 1.42%, and net NPA (NNPA) at 0.31%, compared to 1.39% GNPA and 0.34% NNPA a year ago. The provision coverage ratio was strong at 78%. 

CASA ratio as of March 31, 2025, was 43%; the credit-to-deposit ratio was 85.5%. The capital adequacy ratio stood at 22.2%. 

For the entire financial year 2024-25, the bank's profit on a standalone basis rose to Rs 16,450 crore as against Rs 13,782 crore in the previous year. 

"The bank's profit for FY25 increased to Rs 16,450 crore (including gain on divestment of Kotak General Insurance of Rs 2,730 crore) from Rs 13,782 crore in FY24, up 19 per cent YoY. Profit after tax for FY25 excluding gain on divestment of Kotak General Insurance stood at Rs 13,720 crore," it said. 

The bank’s board announced a dividend of ₹2.50 per share.