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Informist, Saturday, Jul. 26, 2025

 

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--Kotak Mahindra Bank Apr-Jun net profit INR 32.82 bln
--Analysts saw Kotak Mahindra Bank Apr-Jun net profit at INR 34.64 bln 
--Kotak Mahindra Bk Apr-Jun net profit INR 32.82 bln vs INR 62.50 bln yr ago 
--Kotak Bank Apr-Jun total income INR 169.17 bln vs INR 156.75 bln year ago 
--Kotak Bank Apr-Jun provisions INR 12.08 bln vs INR 5.78 bln year ago 
--Kotak Mahindra Bank gross NPA ratio 1.48% as on Jun 30 vs 1.42% qtr ago 
--Kotak Mahindra Bank net NPA ratio 0.34% as on Jun 30 vs 0.31% qtr ago 
--Kotak Mahindra Bank Basel-III capital adequacy ratio 23% as on Jun 30 
--Kotak Bk Apr-Jun net interest income INR 72.59 bln vs INR 68.42 bln yr ago 
--Kotak Mahindra Bank Apr-Jun net interest margin 4.65% 
--Kotak Bk: Unsecured retail advances 9.7% of net advances as on Jun 30 
--Kotak Bank: CASA ratio at 40.9% as on Jun 30
--Kotak Bank Apr-Jun cost of funds 5.01% 
--Kotak Bk provision coverage ratio 77% as on Jun 30 
--Kotak Bank credit to deposit ratio 86.7% as on Jun 30 
--Kotak Bank: Total deposits INR 4.92 tln as on Jun 30, up 13% on year 
--Kotak Bank: Net advances INR 4.45 tln as on Jun 30, up 14% on year 
--Kotak Bank Apr-Jun fresh slippages INR 18.12 bln vs INR 13.58 bln year ago 
--Kotak Bk Apr-Jun recoveries, upgrades INR 5.49 bln vs INR 5.86 bln yr ago 
--Kotak Bk Apr-Jun write-offs INR 7.59 bln vs INR 5.70 bln year ago

 

By Vaishali Tyagi

 

MUMBAI – Kotak Mahindra Bank, India's fourth-largest private sector lender, reported a sharp fall of nearly 48% on year in net profit for the June quarter to INR 32.82 billion as provisions almost doubled from the corresponding quarter a year ago and due to sluggish growth in bank's total income. The bank's total income growth slowed to a nearly 12-quarter low of 7.9% on year.

 

The net profit was down over 7% sequentially and marginally lower than analysts' expectation of INR 34.64 billion. Provisions for Apr-Jun were INR 12.08 billion compared with INR 5.78 billion a year ago. Sequentially, the provisions were up nearly 32.8%. On Friday, shares of the bank had closed 0.8% lower at INR 2,124.60 on the National Stock Exchange. 

 

Fresh slippages during the June quarter were up 33.43% on year at INR 18.12 billion while upgradations and recoveries were down 6% at INR 5.49 billion. Fresh slippages upgraded during the quarter were INR 1.55 billion. The provision coverage ratio of the bank as at June-end was 77%, compared to 78% a quarter ago. The bank wrote-off loans amounting to INR 7.59 billion in Apr-Jun, against INR 5.7 billion written off in the corresponding period a year ago.  

 

The bank's total income for the June quarter was INR 169.17 billion, merely 1.2% higher sequentially. Within total income, interest income rose 8.6% on year to INR 138.37 billion. The net interest income of the bank rose only 6% on year to INR 72.60 billion.

 

The asset quality of the bank worsened in the reporting quarter. The gross non-performing asset ratio rose to 1.48% from 1.42% at the end of March and from 1.39% a year ago. Net non-performing asset ratio rose to 0.34% from 0.31% at end of March and fell marginally from 0.35% from the year-ago. The annualised credit cost for the bank rose significantly to 0.93% in Apr-Jun from 0.55% a year ago and 0.64% a quarter ago.

 

Due to limited rise in net interest income, net interest margin for Apr-Jun moderated to 4.65% from 4.97% a quarter ago. The bank's Basel-III capital adequacy ratio was 23.7% at the end of June, compared to 22.25% at end of March. 

 

During the June quarter, the lender's growth in advances outpaced its growth in deposits. The bank's advances grew nearly 14% on year to INR 4.45 trillion as at end of June while total deposits grew 13% on year to INR 4.92 trillion. The credit-to-deposit ratio was 86.7% at the end of June, lower than 87.2% reported a year ago, but higher than 85.5% at end of March.

 

Within advances, consumer loans were up 16% on year at INR 2.16 trillion, the commercial loan book rose 5% on year to INR 973.62 billion, and the corporate book jumped 10% on year to INR 1.03 trillion. Retail micro-credit book declined 43% on year and 12% on quarter to INR 58.82 billion. According to the bank's investor presentation, unsecured retail advances as a share of net advances were 9.7% as of June end, lower from quarter-ago figure of 10.5%, and also lower than 11.6% as of June 2024.

 

Within deposits, current account, savings account deposits were INR 2.10 trillion as of Jun. 30, down from INR 2.14 trillion from Mar. 31. The current account, savings account ratio was 40.9% at the end of June, as against 43.0% as of March end and 43.4% as of the end of June 2024. The cost of funds decreased to 5.01% in Apr-Jun from 5.10% a year ago.

 

On the operating expenditure front, the bank reported a 6% rise to INR 47.75 billion in the quarter ended June. Out of which, the bank's employee cost jumped up 10% on year to INR 20.65 billion while other operating expenses rose just 2% to INR 27.10 billion.  End

 

Edited by Ashish Shirke

 

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