What Caused Kotak Mahindra Bank's Net Profit to Decline by 7.5% in Q4 FY25?
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Synopsis
Kotak Mahindra Bank has reported a decline in its consolidated profit after tax for Q4 FY25, raising questions about its financial health. Despite this drop, the bank's net interest income continues to show growth. What factors contributed to this performance, and what does it mean for its customers and shareholders?
Key Takeaways
- Consolidated PAT decreased by 7.56% in Q4 FY25.
- Net Interest Income increased by 9% for FY25.
- Average total deposits grew by 15% in Q4.
- Total assets under management rose by 20%.
- Dividend of Rs 2.50 per equity share proposed.
New Delhi, May 3 (NationPress) Kotak Mahindra Bank revealed on Saturday that its consolidated profit after tax (PAT) fell by 7.56 percent, amounting to Rs 4,933 crore for the fourth quarter of FY25, compared to Rs 5,337 crore in the same quarter of the previous financial year (FY24).
Furthermore, Kotak Securities reported a decrease in its standalone PAT, which reached Rs 348 crore in Q4 FY25, reflecting a 7.9 percent decline from Rs 378 crore in the prior year's quarter, according to its stock exchange disclosure.
The net interest income (NII) for FY25 rose to Rs 28,342 crore, up from Rs 25,993 crore in FY24, marking a 9 percent increase. For Q4 FY25, NII also grew to Rs 7,284 crore from Rs 6,909 crore, representing a 5 percent year-on-year rise.
Operating profit for FY25 saw an increase to Rs 21,006 crore from Rs 19,587 crore in FY24, while for Q4 FY25, it stood at Rs 5,472 crore, slightly up from Rs 5,462 crore in Q4 FY24.
According to the bank's filing, consolidated customer assets, which include advances and credit substitutes, increased to Rs 537,860 crore in FY25 from Rs 479,169 crore year-on-year, demonstrating a 12 percent growth.
Total assets under management surged to Rs 669,885 crore, a 20 percent increase from Rs 560,140 crore. The domestic mutual fund Equity AUM rose by 27 percent year-on-year, reaching Rs 313,084 crore as of March 31, 2025.
The bank's board has proposed a dividend of Rs 2.50 per equity share with a face value of Rs 5 for the year ending March 31, 2025, subject to shareholder approval.
As reported, the average total deposits climbed to Rs 468,486 crore for Q4, compared to Rs 408,321 crore for the same quarter last year, reflecting a 15 percent growth.
For FY25, average total deposits increased by 16 percent, with a credit-to-deposit ratio of 85.5 percent. The bank served 5.3 crore customers as of March 31, 2025.
Point of View
Our commitment is to present unbiased financial news. Kotak Mahindra Bank's decline in profit amidst rising net interest income indicates a complex financial landscape. Stakeholders must navigate these challenges with informed decisions, ensuring trust and transparency in banking operations.
NationPress
21/05/2025
Frequently Asked Questions
What was Kotak Mahindra Bank's profit decline for Q4 FY25?
Kotak Mahindra Bank's consolidated profit after tax declined by 7.56% to Rs 4,933 crore in Q4 FY25.
How much did the net interest income increase?
The bank's net interest income rose by 9% to Rs 28,342 crore for FY25.
What is the proposed dividend per equity share?
The bank's board recommended a dividend of Rs 2.50 per equity share for the year ended March 31, 2025.
What are the total assets under management?
Kotak Mahindra Bank's total assets under management grew to Rs 669,885 crore, a 20% increase from the previous year.
How many customers does Kotak Mahindra Bank serve?
As of March 31, 2025, Kotak Mahindra Bank had 5.3 crore customers.
