Kotak Mahindra Bank Records 14% Year-On-Year Drop In Net Profit At ₹3,551.7 Crore

Kotak Mahindra Bank reported a 14% year-on-year drop in net profit at ₹ 3,551.7 crore for Q4FY25, missing the CNBC-TV18 estimate of Rs 3,746.4 crore.

Net interest income (NII) rose 4.5% YoY to Rs 7,283.6 crore, below the poll estimate of Rs 7,434.1. Total income grew 6.8% YoY to Rs 3,182.5 crore, while total expenditure surged 14.4% YoY to Rs 11,240 crore. The lender's net interest margin (NIM) stood at 4.96% for FY25 and 4.97% for Q4FY25.

The board announced a dividend of Rs 2.50 per share. On Friday, Kotak Mahindra Bank shares closed 0.95% lower at Rs 2,185 on the BSE.

In a separate development, Kotak Mahindra Bank has recently reduced the interest rate on savings accounts by 25 basis points (bps) for certain balance slabs.

Account holders with balances between Rs 5 lakh and Rs 50 lakh now earn 4.75% per annum, down from 5%. The bank continues to offer differential interest rates based on the account balance.

Average total deposits jumped 15% YoY to Rs 4,68,486 crore in Q4FY25. For the full year, deposits grew 16% YoY.

On the asset quality front, gross NPA (GNPA) stood at 1.42%, and net NPA (NNPA) at 0.31% 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%.