Kotak Mahindra Bank (KOTAKBANK) Q3 24/25 earnings summary

Executive summary

• Consolidated PAT for Q3FY25 reached ₹4,701 crore, up 10% year-over-year, with ROE at 12.43% and ROA at 2.30%; book value per share rose 23% YoY to ₹769.

• Advances and deposits grew 15% and 16% YoY, NIM stable at 4.93%, and expense control maintained.

• Asset growth led by secured consumer banking and SME; unsecured retail mix slowed to 10.5% due to lower microcredit and credit card disbursements amid embargo.

• Capital market subsidiaries and AMC delivered record profits and AUM growth; Kotak Securities PAT up 46% YoY, Kotak AMC PAT up 73% YoY.

• Board approved unaudited financial results for Q3 and 9MFY25, with unmodified review reports issued.

Financial highlights

• Standalone bank PAT at ₹3,305 crore, up 10% YoY, contributing 72% of group profit; consolidated Q3FY25 PAT: ₹4,701 crore.

• Customer assets as of Dec 2024 stood at ₹519,126 crore, up 15% YoY; CASA ratio at 42.3%.

• Net Interest Income for Q3FY25 grew 10% YoY to ₹7,196 crore; other income up 14% YoY to ₹2,623 crore.

• Cost-to-income ratio improved to 47.24%; operating profit for Q3FY25 increased 13% YoY to ₹5,181 crore.

• Exceptional gain of ₹3,803.40 crore from divestment of 70% stake in Kotak Mahindra General Insurance.

Outlook and guidance

• Business growth target remains at 1.5–2x GDP growth, with focus on customer centricity and scaling.

• Cautious optimism for coming quarters, with expectations of improved results as embargo lifts and digital initiatives scale.

• Acquisition of Standard Chartered Bank India's personal loan book (approx. ₹4,100 crore) is underway, with regulatory approvals received.

• Financial impact from RBI's April 2024 order remains in line with initial estimates; technology and digital transformation initiatives continue.

• Credit card and personal loan growth expected to accelerate post-embargo, with unsecured mix targeted to return to 15%.