Kotak Mahindra Bank shares tank over 5% post Q4 earnings: Here are key factors to know

During the opening session, shares of Kotak Mahindra Bank were trading at ₹2,091.20 apiece on the National Stock Exchange, declining 4.3%. At 10:11 AM, the bank share were trading lower 5.59% at ₹2,063 apiece on NSE.

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

Here are the important factors from Q4 earnings:

1. Kotak Mahindra Bank reported a net profit of ₹3,551.74 crore in the 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.

2. The bank’s net interest margin (NIM) was 4.96% for FY25 and 4.97% for Q4 FY25.

3. 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 the December quarter.

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

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

6. The bank's average total deposits rose to ₹4,68,486 crore for Q4 FY25, compared to ₹4,08,321 crore for Q4 FY24, up 15% annually. As of March 31, 2025, the bank had a customer base of 5.3 crore.

7. The embargo enforced by the Reserve Bank—the bank came out of the restrictions in February this year—also had some impact, and the chief executive, Ashok Vaswani, said it aims to increase the monthly credit card issuances to the pre-embargo level in the next six months.

8. Apart from the impact of the policy rate cuts, the challenges on the MFI book, which got halved to ₹4,500 crore over the last year, hit the bank's net interest margins.

9. Subsidiaries' contribution to the overall group profits increased to 29% as the bank came under pressure due to the setbacks on the MFI book and the restrictions imposed by RBI, Vaswani said.

10. Among the subsidiaries, Kotak Mahindra Prime's net grew 34% to ₹297 crore, while the asset management arm reported a 149% jump at ₹529 crore, helping the overall profits.