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Informist, Saturday, Oct. 25, 2025

 

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--Kotak Bank provision coverage ratio 77% as on Sept 30 vs 71% year ago 
--Kotak Bk Jul-Sept loan write-offs INR 10.99 bln vs INR 6.38 bln year ago 
--Kotak Bank Q2 recoveries, upgrades INR 6.88 bln vs INR 6.81 bln year ago 
--Kotak Bank Jul-Sept fresh slippages INR 16.29 bln vs INR 18.75 bln yr ago 
--Kotak Bank Jul-Sept cost of funds 4.70% vs 5.15% year ago 
--Kotak Bank total deposits INR 5.11 tln as on Sept 30, up 14% on year 
--Kotak Bank CASA ratio at 42.3% as on Sept 30 vs 43.6% year ago 
--Kotak Mahindra Bank Jul-Sept net interest margin 4.54% vs 4.91% year ago 
--Kotak Bank net advances INR 4.63 tln as on Sept 30, up 16% on year 
--Kotak Mahindra Bank Jul-Sept net interest margin 4.54% 
--Kotak Bk Jul-Sept net interest income INR 73.11 bln vs INR 70.20 bln yr ago 
--Kotak Bank Apr-Sept total income INR 331.55 bln vs INR 315.76 bln year ago 
--Kotak Bank Apr-Sept net profit INR 65.35 bln vs INR 95.94 bln year ago 
--Kotak Mahindra Bank Basel-III capital adequacy ratio 22.05% as on Sept 30 
--Kotak Mahindra Bank net NPA ratio 0.32% as on Sept 30 vs 0.34% qtr ago 
--Kotak Mahindra Bank gross NPA ratio 1.39% as on Sept 30 vs 1.48% qtr ago 
--Kotak Bank Jul-Sept provisions INR 9.47 bln vs INR 6.60 bln year ago 
--Kotak Bank Jul-Sept total income INR 162.39 bln vs INR 159.00 bln year ago 
--Kotak Mahindra Bk Jul-Sept net profit INR 32.53 bln vs INR 33.44 bln yr ago 
--Analysts saw Kotak Mahindra Bank Jul-Sept net profit at INR 33.38 bln 
--Kotak Mahindra Bank Jul-Sept net profit INR 32.53 bln

 

By Pratiksha

 

NEW DELHI – Kotak Mahindra Bank's net profit for September quarter fell only marginally on year as healthy growth in interest income cushioned the impact of an on-year jump in provisions, which rose for the tenth consecutive quarter.

 

The private sector bank's net profit for Jul-Sept was INR 32.53 billion, down 2.7% on year. The net profit was down just 0.9% on quarter and slightly lower than analysts' expectation of INR 33.38 billion.

 

The bank's provisions were up 44% on year at INR 9.47 billion in the September quarter but down 22% on quarter. The bank's provision coverage ratio was at 77% as of Sept. 30, up from 71% at the end of September 2024.

 

The bank's total income during the quarter was up 2.1% on year at INR 162.39 billion. Of this, interest income increased 3.3% on year to INR 136.49 billion. However, other income fell 3.5% on year to INR 25.89 billion. 

 

The bank's net interest income – the difference between interest earned and expended – for the quarter ended September rose 4% on year to INR 73.11 billion, in line with analysts' expectations. The lender's total expenses during the quarter under review rose over 1.6% on year to INR 109.70 billion. Of this, interest expenses increased 2.3% on year to INR 63.39 billion. 

 

The lender's asset quality improved both sequentially and annually, which supported the bottom line. The gross non-performing asset ratio declined to 1.39% as of Sept. 30 from 1.48% at the end of June and 1.49% as of Sept. 30, 2024. The net non-performing asset ratio fell to 0.32% from 0.34% as of Jun. 30 and 0.43% at the end of September 2024.

 

The bank recognised fresh slippages worth INR 16.29 billion in Jul-Sept, down from INR 18.75 billion a year ago. The lender's cash recoveries and upgrades were at INR 6.88 billion in Jul-Sept, up from INR 6.81 billion a year ago. Technical write-offs in the reported quarter were at INR 10.99 billion, sharply higher than INR 6.38 billion a year ago. The bank's credit cost fell to 0.79% in the September quarter from 0.93% in the previous quarter, but was higher than 0.65% a year ago.

 

Robust growth in loans also boosted the Mumbai-based bank's bottom line. The bank reported 16% on-year growth in net advances at INR 4.63 trillion as of Sept. 30. Within domestic loans, consumer loans posted a year-on-year increase of 16% at INR 2.26 trillion and commercial advances rose just 5% on year to INR 979.62 billion. Wholesale advances grew at the fastest pace, posting a 17% on-year rise at INR 1.46 trillion. The share of unsecured retail advances in the lender's total advances fell to 9.2% in the September quarter from 11.3% a year ago. 

 

Kotak Mahindra Bank's total deposits were up 14% on year at INR 5.11 trillion as of Sept. 30. Current account deposits rose 14% on year to INR 702.20 billion in the reporting quarter. The current account savings account ratio, however, edged lower to 42.3% from 43.6% a year ago. The bank's cost of funds fell to 4.70% from 5.15% a year ago. 

 

The lender's net interest margin contracted in Jul-Sept, primarily due to the Reserve Bank of India's Monetary Policy Committee cutting the repo rate by 100 bps so far in 2025. The bank's net interest margin was 4.54% in the September quarter, down from 4.65% a quarter ago and 4.91% a year ago. The lender's Basel-III capital adequacy ratio was 22.05% as of Sept. 30, down from 22.61% a year ago. 

 

For Apr-Sept, the bank's net profit was INR 65.35 billion, down 32% on year. Total revenue from operations was INR 331.55 billion in the six months to September, up 5% on year. On Friday, shares of Kotak Mahindra Bank ended 1.7% lower at INR 2187 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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