Kotak Mahindra Bank (KMB), on a standalone basis, reported 47% decline in Net Profit to Rs 3281.68 crore in the quarter ended June 2025 (Q1FY2026) over the corresponding quarter of last year. The sharp decline in the net profit is on account of high base as the bank had registered gains of Rs 3515.9 crore on stake sale in subsidiary in Q1FY2025. The asset quality and credit cost of the bank was impacted due to elevated fresh slippages of loans. Net interest margins (NIMs) declined to 4.65% in Q1FY2026 compared with 4.97% in the previous quarter and 5.02% in the corresponding quarter last year.

The cost-to-income rate improved to 46.19% in Q1FY2026 from 47.71% in the previous quarter and 46.21% in the corresponding quarter last year. The credit cost (NPA provisions as an annualized percentage of loans) jumped to 1.05% in Q1FY2026 from 0.57% in Q1FY2025. The bank has maintained stable loan growth at 14% at end June 2025. The business growth of the bank has improved to 14% at end June 2025.
On consolidated front, the bank has reported 40% decline in the Net Profit to Rs 4472.18 crore for the quarter ended June 2025, on account of high base of Rs 7448.16 crore in the quarter ended June 2025. NII increased 8% to Rs 9718.98 crore, while other income moved up 2% to Rs 9455.61 crore. The operating profit improved 9% to Rs 7374.57 crore in the quarter ended June 2025. Provisions and contingencies have surged 71% to Rs 1321.17 crore, while the effective tax rate was higher at 26.83% in Q1FY2026, compared with 24.6% in Q1FY2025.

Asset quality improves impacted by high slippages: The bank has witnessed pressure on the asset quality due to elevated fresh slippages of loans in the quarter ended June 2025.

On standalone basis, GNPA ratio was at 1.48% and NNPA ratio at 0.34% at end June 2025.

The SMA-2 category loans of the bank rose to Rs 340 crore at end June 2025 from Rs 116 crore a quarter ago and Rs 232 crore a year ago.

Capital Adequacy ratio under Basel III including profits stood at 23.00% with the Tier I of 21.80% at end June 2025.

Standalone Asset Quality Indicators: Kotak Mahindra Bank
	Jun-25	Mar-25	Dec-24	Sep-24	Jun-24	Variation
						QoQ	YoY
Gross NPA (Rs Crore)	6637.70	6133.85	6266.25	6033.17	5477.15	8	21
Net NPA (Rs Crore)	1530.93	1343.44	1680.98	1723.83	1376.33	14	11
% Gross NPA	1.48	1.42	1.50	1.49	1.39	6	9
% Net NPA	0.34	0.31	0.41	0.43	0.35	3	-1
% PCR	77.00	78.00	73.00	71.00	75.00	-100	200
% CRAR - Basel III	23.00	22.25	22.79	22.60	22.41	75	59
Variation in basis points for figures given in percentages and in % for figures in Rs crore

Business Highlights: Standalone Business Highlights

The business level of the bank increased 14% yoy to Rs 957661 crore at end June 2025. The deposits moved up 15% to Rs 512838 crore, while advances increased 14% to Rs 444823 crore at end June 2025. The credit-deposit ratio rose to 86.74% at end June 2025 from 85.54% a quarter ago.

Segment wise, Corp & Business Bkg recorded loan growth of 10% to Rs 102821 crore, CV/CE 13% to Rs 42972 crore, Agriculture Division 11% to Rs 25174 crore, Tractor Finance 17% to Rs 17874 crore, Home Loans & LAP 19% to Rs 131541 crore, Consumer Bank WC (Secured) 18% to Rs 44469 crore, personal loans and Consumer Durables 20% to Rs 24368 crore and SME 23% to Rs 34783 crore end June 2025 over June 2025. However, the Credit Cards loan book has declined 12% to Rs 12924 crore

The CASA deposits ratio declined to 40.88% at end June 2025 from 42.96% a quarter ago and 43.41% a year ago. The cost of saving account deposits declined to 3.32% at end June 2025.

The bank has added 6 branches and reduced 368 ATMs in the quarter ended June 2025. The branch and ATMs network of the bank stood at 2154 branches and 2927 ATMs at end June 2025.

Book Value per share of the bank stood at Rs 620.8 per share at end June 2025. Adjusted book value (net of NNPA and 10% of restructured advances) stood at Rs 613.0 per share at end June 2025.

Consolidated Business Highlights

Consolidated customer assets increased 13% to Rs 557369 crore at end June 2025. The group AUM increased 18% to Rs 750143 crore at end June 2025.

Book Value per share stood at Rs 829.4 per share at end June 2025, while adjusted book value (net of NNPA) stood at Rs 819.6 per share at end June 2025.

Consolidated Quarterly Performance:

On the consolidated front, the bank has reported 40% decline in the net profit at Rs 4472.18 crore, with the NII growth of 8% to Rs 9718.98 crore in the quarter ended June 2025. Non-interest income increased 2% to Rs 9455.61 crore and net total income moved up 5% to Rs 19174.59 crore in the quarter ended June 2025. The expense ratio was lower at 61.5%, while the tax rate was higher at 26.8% in the quarter ended June 2025.

Kotak Prime has reported 14% yoy improvement in the net total income at Rs 745 crore for Q1FY2026, while net profit increased 17% to Rs 272 crore. Total customer asset moved up 16% yoy to Rs 41469 crore at end June 2025. Car advances constituting 82.3% of the total customer assets increased 11% to Rs 34146 crore. Asset quality was stable with %NNPA moderating to 1.00% at end June 2025 from 0.90% at end June 2024.

Kotak Mahindra Life Insurance has reported flat gross premium collection at Rs 2861 crore in Q1FY2026. PAT increased 88% to Rs 327 crore in Q1FY2026. Solvency ratio eased to 2.40% in Q1FY2026 against 2.48% in Q1FY2025.

Kotak Securities has reported PAT at Rs 465 crore in Q1FY2026, exhibiting 16% surge from Rs 400 crore in Q1FY2025. Total income moved up 11% to Rs 1446 crore. Market share was at 10.1% at end June 2025 from 8.8% a quarter ago and 10.1% a year ago.

Kotak Mahindra Capital has reported a net profit of Rs 89 crore, against Rs 81 crore in the corresponding quarter last year. AUM increased 18% to Rs 750143 crore at end June 2025 over June 2025.

Kotak Mahindra AMC and Trustee Co reported 25% surge in Average AUM at Rs 525829 crore in the quarter ended June 2025. The net profit of the company jumped 86% to Rs 326 crore in Q1FY2026.

Standalone Financial Performance - FY2025:

For the year ended March 2025 (FY2025), the bank posted 19% jump in the net profit to Rs 16450.08 crore. The net interest income increased 9% to Rs 28341.78 crore, while the non-interest income improved 11% to Rs 11422.49 crore in FY2025. Expense ratio rose sharply to 47.2% in FY2025 compared to 46.0% in FY2024. The provision and contingencies declined 87% to Rs 2942.36 crore FY2025. The profit before tax was flat at Rs 18068.21 crore in FY2025. The effective tax rate was higher at 28.4% in FY2025 compared to 23.5% in FY2024. The bank has registered gains of Rs 3515.9 crore on 70% stake in its subsidiary Kotak Mahindra General Insurance Company, which boosted the bottomline of the bank. Net profit increased 19% to Rs 16450.08 crore in FY2025.

Consolidated Financial Performance - FY2025:

For the year ended March 2025 (FY2025), the bank posted 21% surge in the net profit to Rs 22125.99 crore. The net interest income improved 11% to Rs 37394.28 crore, while non-interest income declined 2% to Rs 37407.27 crore in FY2025. Expense ratio was lower at 61.2% in FY2025 compared to 64.0% in FY2024. The provision and contingencies jumped 96% to Rs 3859.24 crore in FY2025. The profit before tax rose 6% to Rs 25185.63 crore in FY2025. The effective tax rate was higher at 28.0% in FY2025 compared to 24.7% in FY2024. The net profit increased 21% to Rs 22125.99 crore in FY2025 after gains from stake sale in Kotak Mahindra General Insurance Company.

Kotak Mahindra Bank: Standalone Results
Particulars	2506 (3)	2406 (3)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	13836.54	12746.11	9	52919.73	45798.91	16
Interest Expended	6577.25	5903.76	11	24577.95	19805.71	24
Net Interest Income	7259.29	6842.35	6	28341.78	25993.20	9
Other Income	3079.98	2933.04	5	11422.49	10273.10	11
Net Total Income	10339.27	9775.39	6	39764.27	36266.30	10
Operating Expenses	4775.58	4517.28	6	18753.70	16678.85	12
Operating Profits	5563.69	5258.11	6	21010.57	19587.45	7
Provisions & Contingencies	1207.76	578.48	109	2942.36	1573.73	87
Profit Before Tax	4355.93	4679.63	-7	18068.21	18013.72	0
EO	0.00	3515.90	-	3515.90	0.00	-
PBT after EO	4355.93	8195.53	-47	21584.11	18013.72	20
Provision for Tax	1074.25	1945.71	-45	5134.03	4232.14	21
PAT	3281.68	6249.82	-47	16450.08	13781.58	19
EPS*(Rs)	66.0	71.8		70.1	69.3
Equity	994.2	994.0		994.1	994.0
Adj BV (Rs)	613.0	527.7		582.3	479.5
* EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 5 , Figures in Rs crore,
Source: Capitaline Corporate Database

Kotak Mahindra Bank: Consolidated Results
Particulars	2506 (3)	2406 (3)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	17248.31	15836.79	9	65668.83	56236.63	17
Interest Expended	7529.33	6805.25	11	28274.55	22567.24	25
Net Interest Income	9718.98	9031.54	8	37394.28	33669.39	11
Other Income	9455.61	9239.08	2	37407.27	38037.28	-2
Net Total Income	19174.59	18270.62	5	74801.55	71706.67	4
Operating Expenses	11800.02	11488.59	3	45756.68	45870.82	0
Operating Profits	7374.57	6782.03	9	29044.87	25835.85	12
Provisions & Contingencies	1321.17	774.44	71	3859.24	1972.47	96
Profit Before Tax	6053.40	6007.59	1	25185.63	23863.38	6
EO	0.00	3803.40	-	3803.40	0.00	-
PBT after EO	6053.40	9810.99	-38	28989.03	23863.38	21
Provision for Tax	1624.27	2411.60	-33	7043.29	5886.55	20
PAT Before Minority Interest	4429.13	7399.39	-40	21945.74	17976.83	22
Share of minority interest	0.00	0.00	-	0.00	0.00	-
Share in profits of associates	43.05	48.77	-12	180.25	236.38	-24
PAT	4472.18	7448.16	-40	22125.99	18213.21	21
EPS*(Rs)	90.0	92.1		97.5	91.6
Equity	994.2	994.0		994.1	994.0
Adj BV (Rs)	819.6	701.6		782.8	645.5
* EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 5 , Figures in Rs crore,
Source: Capitaline Corporate Database

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