Kotak Mahindra Bank Q3 Results: 10% Rise In Consolidated Net Profit To Rs 4,701 Crore

Net interest income (NII), which is the difference between interest earned and interest paid, grew by 10 per cent Y-o-Y to Rs 7,196 crore

Kotak Mahindra Bank reported a consolidated net profit of Rs 4,701 crore on Saturday for the quarter ending December, marking a 10 per cent year-on-year (YoY) increase. On a standalone basis, the bank’s net profit for the quarter rose to Rs 3,305 crore, up from Rs 3,005 crore in the same period last year, reflecting a 10 per cent growth driven by both core and non-core incomes.

Net interest income (NII), which is the difference between interest earned and interest paid, grew by 10 per cent Y-o-Y to Rs 7,196 crore. Additionally, fees and services income for Q3FY25 increased by 10 per cent to Rs 2,362 crore, while other income rose by 14 per cent to Rs 2,623 crore.

Net interest margin (NIM) for Q3FY25 decreased to 4.93 per cent, compared to 5.22 per cent in the same quarter of the previous financial year.

The bank's loan portfolio grew by 16 per cent year-on-year (Y-o-Y), reaching Rs 4.33 trillion as of December 31. Additionally, unsecured retail advances, which include retail microcredit, accounted for 10.5 per cent of net advances as of December 31, 2024.

The bank's retail microcredit portfolio declined to Rs 8,225 crore, down from Rs 8,509 crore in the same period last year. On a sequential basis, the microcredit book decreased by 16 per cent from Rs 9,776 crore. Meanwhile, average total deposits rose to Rs 4.58 trillion, reflecting a 15 per cent year-on-year growth.

As of December 31, the share of low-cost deposits, which include current and savings account deposits, stood at 42.3 per cent, down from 47.7 per cent in the same period last year. Average current account deposits grew by 12 per cent year-on-year, while savings account deposits saw a more modest growth of 1 per cent.

The credit-deposit (CD) ratio slightly decreased to 87.4 per cent from 88 per cent, compared to 86.6 per cent at the end of September.

Gross non-performing assets (NPA) as a percentage of gross advances improved to 1.5 per cent, down from 1.73 per cent a year ago, while the net NPA ratio rose slightly to 0.41 per cent, from 0.34 per cent. In absolute terms, the gross NPA amounted to Rs 6,266 crore as of December 31, compared to Rs 6,302 crore in the same period last year.

The total provision for the quarter stood at Rs 6,634 crore, compared to Rs 6,963 crore in the same period last year.