Kotak Mahindra Bank Q4 result: Net profit declines 14% to ₹3,552 crore, NII rises 5%; bank announces dividend

Kotak Mahindra Bank, the country's third largest private sector lender, on Saturday, May 3, reported a net profit of ₹3,551.74 crore in January-March quarter, marking a decline of 14% from ₹4,133.30 crore in the same period last year. The decline in profit came on the back of sharply higher provisions for bad loans.

Kotak Mahindra Bank's provisions surged more than three times to ₹909 crore as against ₹264 crore in the corresponding period last year.

Its net interest income in the fourth quarter of financial year 2024-25 (Q4FY25) rose 5.4% to ₹7,283.57 crore as against ₹6,909.35 crore in the year-ago period.

Kotak's net Interest Margin (NIM) was 4.96% for FY25 and 4.97% for Q4FY25

The bank's asset quality improved sequentially as its gross non-performing assets (NPAs), as a percentage of total advances, came in at 1.42% compared to 1.50% in the previous quarter.

Its net NPAs declined to 0.31% from 0.41% in December quarter.

Kotak Mahindra Bank's board has also recommended a dividend of ₹2.5 per share.

For financial year 2024-25, the Mumbai-based lender's net profit rose 19% to ₹16,450 crore from ₹13,782 crore in FY24.

"Fees and services for FY25 increased to ₹9,530 crore from ₹8,464 crore in FY24, up 13% YoY and for Q4FY25 increased to ₹2,616 crore from ₹2,467 crore in Q4FY24, up 6% YoY. Operating profit for FY25 increased to ₹21,006 crore from ₹19,587 crore in FY24, up 7% YoY and for Q4FY25 stood at ₹5,472 crore (₹5,462 crore in Q4FY24)," Kotak Mahindra Bank said in a press release.

The bank's average total deposits rose to ₹4,68,486 crore for Q4FY25, compared to ₹4,08,321 crore for Q4FY24 up 15% annually. As of March 31, 2025, the bank had a customer base of 5.3 crore.

Kotak Mahindra Bank shares ended 0.94% lower at ₹2,185 a day ahead of its earnings announcement.