Kotak Mahindra Bank's Q2 profit rises 5% to ₹3,344 crore
Kotak Mahindra Bank has reported a standalone profit after tax (PAT) of ₹3,344 crore, for the quarter ending September 2024. The figure marks a 5% increase from the same period last year, when the bank had recorded a PAT of ₹3,191 crore. The bank's net interest income (NII) also witnessed an uptick in Q2 FY25, rising by 11% year-on-year to ₹7,020 crore.
Net interest margin and asset quality
The bank's net interest margin (NIM) for Q2 stood at 4.91%, a marginal decline from 5.22% in Q2 FY24. Meanwhile, in terms of asset quality, gross non-performing assets (GNPA) climbed to 1.49% from 1.72% YoY, while net NPA also rose to 0.43% from last year's 0.37%.
Capital adequacy and return on assets
As of September 2024, Kotak Mahindra Bank's capital adequacy ratio was at 22.6% as per Basel III norms. The CET1 ratio was reported at 21.5%, including unaudited profits. However, the standalone return on assets (ROA) for Q2 FY25 was slightly lower at 2.17% as compared to the previous year's figure of 2.45%.
Total deposits and advances grow
Kotak Mahindra Bank also reported a 16% increase in total deposits to ₹4,46,110 crore. The bank's CASA ratio also improved sequentially, rising to 43.6% in Q2 from 43.4% in Q1. Meanwhile, advances were up by an impressive 17% YoY, reaching ₹4,19,108 crore. On a consolidated level, the bank's PAT grew by 13% year-on-year to ₹5,044 crore. The total assets under management as of September-end stood at ₹6,80,838 crore, a whopping 37% increase over ₹4,98,342 crore in Q2 FY24.
Kotak Securities and AMC's performance
Kotak Securities reported a PAT of ₹324 crore in Q2, down from ₹400 crore YoY. Its overall market share also dipped slightly to 11.6% from 12.2%. Meanwhile, Kotak Mahindra AMC saw its PAT rise to ₹197 crore sequentially, while its assets under management (AUM) jumped by a substantial 37% YoY to reach ₹6,80,838 crore.
