Kotak Mahindra Bank Q1: Net Profit Soars 81 Per Cent, Lender's Asset Quality Improves

The firm’s consolidated net profit also included gains earned from the lender’s sale of a majority 70 per cent stake in its insurance wing, Kotak General Insurance Company, to Zurich Insurance Group

The bank’s advances climbed 20 per cent on a year-on-year (YoY) basis to Rs 4.05 lakh crore in the quarter under review. (Image Source: Kotak Mahindra Bank)

Source : Kotak Mahindra Bank

Kotak Mahindra Bank on Saturday reported a 81 per cent surge in its net profit after tax on a year-on-year (YoY) basis in its first quarter (Q1) earnings in the 2024-25 fiscal year (FY25). It logged a net profit of Rs 6,250 crore for the June quarter in the current financial year (FY25) against a net profit of Rs 3,452 crore in the first quarter of the previous 2023-24 fiscal year (FY24).

The firm’s consolidated net profit also included gains earned from the lender’s sale of a majority 70 per cent stake in its insurance wing, Kotak General Insurance Company, to Zurich Insurance Group. 

The bank reported a slight improvement in Gross Non-Performing Assets (GNPAs) to 1.39 per cent in the quarter ended June 30, 2024 in FY25, from 1.77 per cent logged in the corresponding quarter a year earlier. The Net Non-Performing Assets (NNPAs) of the lender also improved to 0.35 per cent in Q1FY25, against 0.40 per cent in Q1FY24. NPAs are loans or advances issued by the bank which are subject to late repayment or unlikely to be repaid by the borrower in full. 

The bank’s advances climbed 20 per cent on a year-on-year (YoY) basis to Rs 4.05 lakh crore in the quarter under review, while the overall deposits of the bank increased by 21 per cent to Rs 4.35 lakh crore in Q1FY25, up from Rs 3.61 lakh crore clocked in the year-ago period.

 The Net Interest Income (NII) of the bank climbed 10 per cent from Rs 6,234 crore in the April-June quarter in FY24 to Rs 6,842 crore in the same quarter in the current fiscal year. NII is a reflector of interest earned by the bank after measuring the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors.

The net interest margin of the lender also moderated to 5.02 per cent in the reviewing quarter, from 5.57 per cent logged in the same period a year earlier.