Kotak Mahindra Bank Q1 FY25 results: Profit soars 81% YoY to Rs 6,250 crore; total income up 19%

Private lender Kotak Mahindra Bank Ltd on Saturday reported an 81.03 per cent surge in its year-on-year (YoY) standalone net profit during the first-quarter of the ongoing financial year 2024-25 (Q1 FY25). During the quarter under review, profit came at Rs 6,249.82 crore compared with Rs 3,452.30 crore in the year-ago period.

The bank's total income rose 18.90 per cent to Rs 15,675.15 crore in Q1 FY25 from Rs 13,183.26 crore in the corresponding period last year.

Kotak Bank's profit after tax (PAT) for Q1 FY25 excluding gains (net of tax) of Rs 2,730 crore (on divestment of stake in Kotak General Insurance) stood at Rs 3,520 crore, it stated in a press release.

"Net interest income (NII) for Q1 FY25 increased to Rs 6,842 crore from Rs 6,234 crore in Q1 FY24, up 10 per cent YoY. Net interest margin (NIM) was 5.02 per cent for Q1 FY25. Fees and services for Q1 FY25 increased to Rs 2,240 crore from Rs 1,827 crore in Q1 FY24, up 23 per cent YoY. Operating profit for Q1 FY25 increased to Rs 5,254 crore from Rs 4,950 crore in Q1 FY24, up 6 per cent YoY. Customers as at June 30, 2024 were 5.1 crore (4.3 crore as at June 30, 2023)," it also said.

"Consolidated PAT for Q1 FY25 was Rs 7,448 crore, up 79 per cent YoY from Rs 4,150 crore in Q1 FY24. Consolidated PAT for Q1 FY25 excluding gains (net of tax) of Rs 3,013 crore (on divestment of stake in Kotak General Insurance) stood at Rs 4,435 crore," it mentioned.

"Q1 FY25 saw the completion of a landmark deal in General Insurance sector with Zurich Insurance Group taking a 70 per cent stake in Kotak General Insurance. The alliance brings together Zurich's global insurance leadership and scale with Kotak's local expertise and reach. Post this transaction, Kotak Bank holds 30 per cent stake in KGI and will continue to act as corporate agent of KGI for distribution of general insurance products," it further stated.

Percentage of gross non-performing asset (NPA) to gross advances slipped to 1.39 per cent in the June 2024 quarter from 1.77 per cent in Q1 FY24. Net NPA to net advances percentage was down at 0.35 per cent YoY from 0.4 per cent in the same period last year.

On Friday, Kotak Mahindra Bank shares were last seen 0.81 per cent down at Rs 1,812 ahead of quarterly results. At this price, the stock has fallen 5.09 per cent in 2024 so far.