Kotak Mahindra's Q1 profit exceeds prediction: Up 81% to ₹6,250cr
Kotak Mahindra Bank has reported a significant surge in its net profit for the first quarter of fiscal year (FY) 2025. The net profit soared by 81% to ₹6,250 crore in the April-June quarter, marking a substantial increase from ₹3,452 crore during the same period last year. This impressive growth is largely attributed to a boost of ₹3,012 crore in its profit after tax, following the sale of its stake in insurance subsidiary Kotak General Insurance to Zurich Insurance Group.
Brokerage expected a slight uptick
Kotak Mahindra Bank's reported profits have exceeded the average estimate of ₹3,702 crore predicted by eight brokerages. The bank also saw an increase in its net interest income (NII), which rose by 10% from ₹6,234 crore last year to ₹6,842 crore. However, this fell short of brokerage estimates which had anticipated an NII of ₹7,087 crore. The bank's net Interest Margin (NIM) stood at a solid 5.02% for Q1FY25.
Decrease in non-performing assets
Kotak Mahindra Bank reported a decrease in both gross and net non-performing assets (GNPA and NNPA). The GNPA stood at 1.39% in Q1FY25, down from 1.77% last year. Similarly, the NNPA also decreased from last year's figure of 0.44% to stand at 0.35% this year. This indicates an improvement in the bank's asset quality over the past fiscal year.
Advances and deposits witness significant growth
Kotak Mahindra Bank's advances grew by 20% year-on-year (YoY) to ₹4.05 lakh crore compared to ₹3.37 lakh crore on June 30, 2023. Unsecured retail advances of the bank as a percentage of net advances stood at 11.6% till Q1FY25. Total deposits at the bank also saw a significant increase, growing by 21% to ₹4.35 lakh crore for Q1FY25 compared to ₹3.61 lakh crore last year, indicating robust financial growth for the bank.
