🧾 Introduction
Kotak Mahindra Bank reported a mixed set of numbers for Q4 FY25. While revenue rose 10.7% YoY to ₹16,772 crore, net profit declined 7.6% YoY to ₹4,933 crore due to higher provisions. Asset quality improved, and the bank declared a ₹2.5 dividend per share, but slower loan growth and margin pressure led to a 5.3% drop in the stock post-results.
💡 Financial Highlights (Q4 FY25)
| Metric | Q4 FY25 (Mar '25) | Q3 FY25 (Dec '24) | Q4 FY24 (Mar '24) | QoQ Change | YoY Change | Trend |
|---|---|---|---|---|---|---|
| Revenue | ₹16,772 Cr | ₹16,633 Cr | ₹15,156 Cr | 0.80% | 10.70% | Steady Growth |
| Interest Income | ₹7,160 Cr | ₹7,171 Cr | ₹6,212 Cr | -0.20% | 15.30% | Slight Dip QoQ |
| Expenses | ₹13,664 Cr | ₹10,595 Cr | ₹14,920 Cr | 29.00% | -8.40% | Higher QoQ Cost |
| Other Income | ₹10,402 Cr | ₹7,313 Cr | ₹12,751 Cr | 42.20% | -18.40% | Volatile |
| PBT | ₹6,351 Cr | ₹6,180 Cr | ₹6,775 Cr | 2.80% | -6.30% | Moderate Decline YoY |
| Net Profit | ₹4,933 Cr | ₹4,701 Cr | ₹5,337 Cr | 4.90% | -7.60% | Marginal Drop YoY |
💰 Dividend Announcement
- Dividend Declared: ₹2.5 per share
- Record Date: As announced in AGM proceedings
- Reflects the bank’s continued focus on shareholder value despite near-term headwinds.
📈 Key Financial Ratios
| Ratio | Q4 FY25 (Mar '25) | Q3 FY25 (Dec '24) | Q4 FY24 (Mar '24) | QoQ Change | YoY Change | Trend |
|---|---|---|---|---|---|---|
| Operating Margin | 18.6%* (Est.) | 36.3%* (Est.) | 12.0%* (Est.) | ↓ | ↑ | Volatile |
| Net Profit Margin | 29.4% (4,933/16,772) | 28.30% | 35.20% | ↑ | ↓ | Stable to Weakening |
| EPS (₹) | ₹ 24.81 | ₹ 23.64 | ₹ 26.85 | 5.00% | -7.60% | Slightly Positive QoQ |
🏦 Peer Comparison
| Company | CMP ₹ | Market Cap ₹Cr | P/E | P/B | ROE % | ROCE % | 52W High ₹ | 52W Low ₹ |
|---|---|---|---|---|---|---|---|---|
| HDFC Bank | 1917.5 | 14,68,432 | 20.71 | 2.85 | 14.53 | 7.51 | 1978.9 | 1448.15 |
| ICICI Bank | 1439.5 | 10,26,234 | 20.13 | 3.31 | 17.97 | 7.88 | 1463 | 1051.05 |
| Kotak Mah. Bank | 2102 | 4,17,930 | 21.75 | 2.67 | 13.4 | 7.64 | 2301.9 | 1602.2 |
| Axis Bank | 1201.05 | 3,72,126 | 13.23 | 2.01 | 16.36 | 7.11 | 1339.65 | 933.5 |
| IDBI Bank | 90.81 | 97,642 | 12.78 | 1.64 | 13.54 | 6.76 | 107.98 | 65.89 |
| Yes Bank | 21.23 | 66,569 | 27.17 | 1.4 | 5.44 | 6.36 | 27.44 | 16.02 |
| IndusInd Bank | 787.5 | 61,350 | 9.53 | 2.93 | 15.25 | 7.93 | 1550 | 605.4 |
🔍 Strategic Developments
- RBI Lifted Credit Card Ban – Positive for future retail customer growth.
- Loan Growth Slower than Peers – Particularly noticeable when compared to HDFC and ICICI.
- Provisions for Bad Loans Increased 3x YoY – A key contributor to quarterly profit decline.
- Deposit Base Grew 15% YoY – Total deposits at ₹4.68 lakh crore.
- Improved Asset Quality – Gross NPA at 1.42% (vs. 1.50%), Net NPA at 0.31% (vs. 0.41%).
✅ Positives & Negatives
👍 Positives This Quarter
- Decline in Gross & Net NPAs
- Improved provision coverage (78% vs. 73%)
- Dividend payout of ₹2.5/share
- Stable EPS growth
- RBI lifting card ban supports long-term expansion
👎 Negatives / Challenges
- 7.6% YoY decline in Q4 Net Profit
- Provisions surged 3x YoY
- Margins under pressure
- Loan growth slower than peers
- Stock fell 5.31% post-results
📉 Market Reaction & Street View
- Market Reaction: Shares fell 5.31% post-result announcement, trading at ₹2,069 on NSE.
- Investor Sentiment: Turned cautious due to weaker core performance.
- Analyst Commentary:
- Brokerages Downgraded the Stock, citing slower deposit growth and stretched valuations.
- Some maintained long-term positive view, citing potential recovery from credit card segment and unsecured retail growth.
🔮 Final Outlook
While Kotak Mahindra Bank showed resilience on a full-year basis, Q4 FY25 performance fell short of expectations due to rising provisions and slower growth. Despite improved asset quality and dividend payout, subdued core metrics and rising competition from peers warrant caution. Strategic positives like RBI’s nod on credit cards may support long-term performance, but near-term challenges persist.
🔗 External Links
For detailed financials and official updates, visit: Kotak Mahindra Bank Official Website
⚠️ Disclaimer
This summary is based on publicly available information from official filings, press releases, and financial news sources. It is provided for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions.