Kotak Mahindra Bank Q4: Lender Sees 14 Per Cent Decline In Net Profit, Asset Quality Tanks Slightly
The private lender reported that its standalone net profit during the Q4FY25 stood at Rs 3,552 crore, slipping 14 per cent from Rs 4,133 crore logged during the same quarter last year.
Kotak Mahindra Bank on Saturday reported the financial results for the last quarter of the 2024-25 fiscal year (FY25). The private lender informed the exchanges via an official filing that its standalone net profit during the January-March quarter (Q4) in FY25 stood at Rs 3,552 crore, slipping 14 per cent from Rs 4,133 crore logged during the same quarter in the preceding 2023-24 fiscal year (FY24).
However, the lender said that its total income for the quarter under review increased to Rs 16,712 crore, from Rs 15,285 crore clocked in the corresponding period last year.
Interest income during the quarter reached Rs 13,530 crore, up from Rs 12,307 crore reported in Q4FY24. Net Interest Income (NII) rose modestly by 5 per cent year-on-year to Rs 7,284 crore, compared to Rs 6,909 crore.
Notably, the NII is a key profitability metric for banks. It represents the difference between the interest income earned from a bank’s interest-generating assets (like loans, mortgages, and investments) and the interest paid on its interest-bearing liabilities (like customer deposits or borrowings).
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Asset Quality Dips Slightly
Asset quality showed a slight decline with gross Non-Performing Assets (NPAs) rising to 1.42 per cent of total advances as of March 2025, from 1.39 per cent during the January-March period last year. However, net NPAs saw some improvement, coming in at 0.31 per cent of net advances compared to 0.34 per cent in the year-ago period.
An asset (usually a loan or advance) becomes an NPA when it stops generating income for the bank. Specifically, if the borrower fails to make interest or principal repayments for a specified period—typically 90 days or more—the loan is classified as a non-performing asset.
On a consolidated basis, Kotak Mahindra Bank’s Q4 net profit dropped 8 per cent to Rs 4,933 crore from Rs 5,337 crore in the same quarter last year. The consolidated total income also fell slightly to Rs 27,174 crore, down from Rs 27,907 crore reported in Q4FY24.
The Board of Directors proposed a dividend of Rs 2.50 per equity share (face value Rs 5) for the financial year ended March 31, 2025, pending shareholder approval.
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