Kotak Mahindra Bank shares fell 3% in early trade after the bank reported its weakest quarterly performance in three years. As of 9:15 AM, the shares were trading 2.47% lower at Rs 2,131.20.
For Q4 FY25, the bank posted a consolidated net profit of ₹3,551 crore, down 14% year-on-year (YoY) from ₹4,133 crore in the same quarter last year. Sequentially, net profit increased 7% from ₹3,305 crore in Q3 FY25.
Total income for the quarter rose 9% YoY to ₹16,712 crore, including other income of ₹3,182 crore, which grew 7% YoY. However, Net Interest Income (NII) came in at ₹7,284 crore, up only 5.4% YoY — the slowest growth in 14 quarters — and below Bloomberg’s estimate of ₹7,347 crore.
Operating expenses rose 13% YoY to ₹4,994 crore, while provisions and contingencies surged 244% to ₹909 crore from ₹264 crore a year ago. This impacted the bank’s profit before tax, which fell 12% YoY to ₹4,563 crore.
On the asset quality front, the Gross NPA ratio improved to 1.42%, down 8 basis points (bps) quarter-on-quarter, and Net NPA declined to 0.31%, down 10 bps — indicating marginal improvement in credit quality.
Despite a weak Q4, Kotak Mahindra Bank reported a 19% rise in full-year consolidated net profit to ₹16,450 crore in FY25. NII for the year stood at ₹28,225 crore, marking an 8% increase from FY24.
In the meantime, IIFL Capital has reaffirmed its ‘Reduce’ rating on Kotak Mahindra Bank (KMB), even as it slightly raised the target price to ₹2,060 from ₹2,040—implying a 6% downside from the current market price of ₹2,180.10. The cautious stance stems from weak business momentum and continued premium valuations.
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