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

Executive summary

• Consolidated PAT for Q3 FY25 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% to ₹769.

• Advances and deposits grew 15–16% year-over-year in Q3 FY25, with NIM stable at 4.93% and tight expense control.

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

• Credit quality remained stable; gross NPA at 1.5%, net NPA at 0.41%, provision coverage ratio improved to 73%.

• Embargo from RBI impacted credit card and digital onboarding growth, but significant progress made on regulatory compliance and technology transformation.

Financial highlights

• Standalone bank PAT at ₹3,305 crore, up 10% year-over-year, contributing 72% of group profit.

• Net Interest Income for Q3 FY25 grew 10% YoY to ₹7,196 crore; other income up 14% YoY to ₹2,623 crore.

• Operating profit for Q3 FY25 increased 13% YoY to ₹5,181 crore; cost/income ratio improved to 47.24%.

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

• Fees and services income grew 10% year-over-year, impacted by credit card embargo and regulatory changes.

Outlook and guidance

• Business growth targeted at 1.5–2x GDP growth, with focus on customer centricity and digital transformation.

• Cautious optimism for the coming quarters, expecting improvement in credit card and personal loan trends, while monitoring microfinance closely.

• Embargo expected to be lifted soon, which will enable renewed growth in credit cards and digital products.

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