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Kotak Mahindra Bank Q4 Results: Its NII increases by 5 per cent YoY to Rs 7,284 crore, against Rs 6,909 crore a year ago.
Kotak Mahindra Bank Q4 Results.
Kotak Mahindra Bank on Saturday reported a 14 per cent YoY decline in its standalone net profit to Rs 3,552 crore for the fourth quarter ended March 31, 2025. However, its net interest income, the difference between interest earned and interest expended, increased by 5 per cent YoY to Rs 7,284 crore, against Rs 6,909 crore a year ago.
The private sector lender’s net profit had stood at Rs 4,133 crore in the corresponding quarter last year.
Kotak’s board has declared a dividend of Rs 2.50 per equity share for the financial year 2024-25.
“The board of directors of the bank has recommended a dividend of Rs 2.50 per equity share having face value of Rs 5, for the year ended March 31, 2025, subject to approval of shareholders,” Kotak Mahindra Bank said in a regulatory filing.
The bank’s provisions and contingencies, or funds set aside for potential bad loans, tripled to Rs 909 crore.
Its gross non-performing assets ratio, a key gauge of asset quality, was 1.42 per cent at the end of March compared with 1.50 per cent at the end of December.
Kotak’s loans rose 13 per cent in value terms in the March quarter, while deposits were up 15 per cent.
In February, the Reserve Bank of India (RBI) lifted a 10-month ban on Kotak that barred the lender from issuing credit cards and enrolling clients digitally due to gaps in its IT systems.
The net interest margin shrank to 4.97 per cent from 5.28 per cent a year earlier, but was higher than 4.93 per cent reported in the previous quarter.
In a falling interest rate scenario, lenders typically pass on central bank rate cuts to borrowers, making loans more attractive, but the pass-through to deposit rates comes with a lag, temporarily compressing margins until the adjustment is fully reflected across both sides of the balance sheet.
A majority of Kotak’s loan book is linked to the external benchmark, putting its margins under pressure.
Shares of Kotak Mahindra Bank on Friday fell by 0.94 per cent to Rs 2,185 apiece on the BSE.
Meanwhile, State Bank of India (SBI), the country’s largest lender, also reported its Q4 FY25 earnings on Saturday. The state-owned lender reported a 10 per cent decline in its net profit at Rs 18,643 crore for the fourth quarter ended March 31, 2025. However, its total income during January-March 2025 increased to Rs 1,43,876 crore as against Rs 1,28,412 crore in the year-ago period.
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