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Kotak Mahindra Bank Q1 PAT slides 7% YoY to Rs 3,282 cr

26-Jul-25 17:52 Hrs IST

This decline excludes gains from the divestment of KGI. On 18 June 2024, the Bank completed the divestment of a 70% stake in its subsidiary, Kotak Mahindra General Insurance Company (KGI), to Zurich Insurance Company (Zurich). Consequent to this sale, KGI ceased to be a subsidiary of the Bank and became an associate with effect from 18 June 2024.

The Bank continues to hold the remaining 30% of the share capital in Zurich Kotak General Insurance Company (India) (formerly known as Kotak Mahindra General Insurance Company) as of 30 June 2025.

However, total income rose 7.91% year on year (YoY) to Rs 16,916.52 crore in the quarter ended 30 June 2025.

Profit from ordinary activities before tax stood at Rs 4,355.93 crore in the first quarter of FY26, down 46.84% from Rs 8,195.53 crore posted in the same quarter last year.

Net Interest Income (NII) for Q1 FY26 increased to Rs 7,259 crore, up 6% YoY from Rs 6,842 crore in Q1 FY25. The Net Interest Margin (NIM) stood at 4.65% for Q1 FY26.

The bank's operating profit rose to Rs 5,564 crore in Q1 FY26, up 6% YoY from Rs 5,254 crore in Q1 FY25.

The average total deposits grew 13% year-on-year to Rs 491,998 crore in Q1 FY26, up from Rs 435,603 crore in Q1 FY25.

Fees and services income for Q1 FY26 increased marginally to Rs 2,249 crore, compared to Rs 2,240 crore in Q1 FY25. The customer base stood at 5.4 crore as of 30 June 2025, up from 5.1 crore as of 30 June 2024.

On the asset quality front, as of 30 June 2025, the Gross NPA (GNPA) stood at 1.48% and Net NPA (NNPA) at 0.34%, compared to GNPA of 1.39% and NNPA of 0.35% as of 30 June 2024. The Provision Coverage Ratio (PCR) stood at 77% in Q1 FY26.

Net advances increased 14% YoY to Rs 444,823 crore as of 30 June 2025, from Rs 389,957 crore a year earlier.

The Capital Adequacy Ratio (CAR) of the bank, as per Basel III norms, stood at 23.0% as of 30 June 2025, with a CET1 ratio of 21.8% (including unaudited profits).

Return on Assets (ROA) for Q1 FY26 (annualized) stood at 1.94%, while Return on Equity (ROE) was 10.94%.

The bank's CASA ratio stood at 40.9% as of 30 June 2025. TD sweep balances grew 23% YoY to Rs 59,098 crore. The cost of funds was 5.01% in Q1 FY26.

On a consolidated basis, the bank's PAT for Q1 FY26 was Rs 4,472 crore (excluding the insurance divestment gains), declining 1% from Rs 4,435 crore in Q1 FY25. Total income rose 6.42% year on year (YoY) to Rs 26,703.92 crore in the quarter ended 30 June 2025.

The bank's consolidated customer assets, comprising advances (including IBPC & BRDS) and credit substitutes, rose 13% YoY to Rs 557,369 crore as of 30 June 2025, from Rs 494,105 crore in the year-ago period.

The bank's average Liquidity Coverage Ratio (LCR) stood at 138% for Q1 FY26.

Total Assets Under Management (AUM) grew 18% year-on-year (YoY) to Rs 750,143 crore as of 30 June 2025, up from Rs 636,311 crore as of 30 June 2024. The Domestic Mutual Fund (MF) Equity AUM rose 22% YoY to Rs 357,323 crore as of 30 June 2025.

Kotak Mahindra Bank is the flagship company of the Kotak Group and has diversified operations covering commercial vehicle financing, consumer loans, corporate finance, and asset reconstruction. Through its subsidiaries, the bank is engaged in investment banking, equity broking, securities-based lending, and car finance.