Kotak Mahindra Bank (KOTAKBANK) Q1 24/25 earnings summary

Executive summary

• Consolidated net profit for Q1 FY25 rose to ₹7,448 crore, up 79% YoY, driven by a significant gain from the divestment of a 70% stake in Kotak General Insurance, with the group retaining a 30% stake and ongoing operational ties.

• Bank PAT stood at ₹6,250 crore, with strong growth in customer assets (up 20% YoY) and average deposits (up 21% YoY).

• Subsidiaries delivered robust performance: Kotak Securities PAT up 83% YoY, Kotak AMC PAT up 65–71% YoY.

• RBI order restricts onboarding new customers via digital channels and issuing new credit cards; remedial actions and compliance efforts are underway.

• Group AUM crossed ₹636,311 crore, with strong growth in equity and debt segments.

Financial highlights

• Consolidated profit (excluding KGI transaction) at ₹4,435 crore, up 7% YoY; consolidated customer assets at ₹4,94,105 crore, up 22% YoY.

• Consolidated total income for Q1 FY25 was ₹25,075.87 crore, up from ₹20,723.91 crore YoY.

• Bank NIM at 5.02%, CASA ratio at 43.4%, and NNPA at 0.35%.

• Book value per share increased to ₹710 from ₹584 YoY.

• Earnings per share (consolidated, basic and diluted) for Q1 FY25 was ₹37.47, up from ₹20.89 YoY.

Outlook and guidance

• Remedial action plan for RBI restrictions is on track, with ongoing engagement with the regulator.

• Unsecured retail book target remains mid-teens as a percentage of advances, with growth to resume post-embargo.

• NIM guidance is cautious; sustaining above 5% depends on liquidity, deposit mix, and repo rate movements.

• Branch network to expand to 3,000–3,500 over 4–5 years, with focus on leveraging branches across business lines.

• Cost-to-income ratio expected to improve over 4–5 years as scale and technology investments yield benefits.