Kotak Mahindra Bank Soars with 81% Surge in Q1 FY25 Profits

Kotak Mahindra Bank reported an impressive growth in Q1 FY25 with a Profit After Tax of Rs 6,250 crore, marking an 81% increase from the previous year. Excluding gains from selling its stake in Kotak General Insurance, PAT stood at Rs 3,520 crore. Key growth drivers included increased Net Interest Income and customer assets.

Kotak Mahindra Bank has reported a dramatic increase in its financial performance for the first quarter of FY25. The bank's Profit After Tax (PAT) skyrocketed to Rs 6,250 crore, an 81% jump from Rs 3,452 crore in the same period of FY24. This surge was largely driven by the sale of its stake in Kotak General Insurance to Zurich Insurance Group.

Excluding the net tax gains of Rs 2,730 crore from this divestment, the PAT stood at Rs 3,520 crore for the quarter. Additionally, the Net Interest Income (NII) rose by 10% year-on-year to Rs 6,842 crore from Rs 6,234 crore in Q1 FY24. The bank's Net Interest Margin (NIM) came in at 5.02% for the quarter.

Fees and services income also posted a 23% year-on-year growth to Rs 2,240 crore. The bank's operating profit edged up by 6% to Rs 5,254 crore. Kotak's customer base grew to 5.1 crore by June 30, 2024, up from 4.3 crore a year earlier.

The bank saw a 20% year-on-year increase in customer assets, totaling Rs 435,827 crore by the end of the quarter. Meanwhile, the proportion of unsecured retail advances, including retail microcredit, stood at 11.6% of net advances.

Average total deposits surged by 21% year-on-year to Rs 435,603 crore. Average current deposits grew by 5% to Rs 62,200 crore, and average savings deposits rose by 2% to Rs 122,105 crore. The bank's asset quality also improved with the Gross Non-Performing Assets (GNPA) ratio at 1.39% and the Net Non-Performing Assets (NNPA) ratio at 0.35%, compared to 1.77% and 0.40%, respectively, a year earlier.

Overall, Kotak Mahindra Bank has shown robust financial health and growth, driven by increased income from interest and services, as well as notable rises in customer assets and deposits.

(With inputs from agencies.)