Kotak Mahindra Bank Reports Larger-Than-Expected Q4 Profit Decline Amid Rising Provisions
Mumbai, May 3, 2025—Kotak Mahindra Bank has reported a 14% year-on-year decline in its standalone net profit, falling to ₹3,552 crore for the quarter ending March 2025. Analysts had expected a profit of ₹3,625 crore, but the bank’s earnings were impacted by a sharp rise in provisions for potential bad loans, which tripled to ₹909 crore.
Despite the profit decline, Kotak Mahindra Bank saw loan growth of 13% and a 15% increase in deposits during the quarter. The bank’s gross non-performing assets (GNPA) ratio improved slightly to 1.42%, compared to 1.50% in December 2024.
The net interest income (NII)—the difference between earnings on loans and payouts on deposits—rose 5% to ₹7,284 crore. However, the net interest margin (NIM) shrank to 4.97%, down from 5.28% a year earlier, though it showed a slight improvement from 4.93% in the previous quarter.
In February, the Reserve Bank of India (RBI) lifted a 10-month ban on Kotak Mahindra Bank that had prevented it from issuing new credit cards and digitally onboarding customers due to gaps in its IT systems.
The bank’s board has recommended a dividend of ₹2.50 per share for shareholders based on its FY25 performance.
