GuruFocus News
4 min read
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Net Advances Growth: 14% year-on-year.
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Deposits Growth: 15% year-on-year.
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CASA Ratio: 40.9% as of June 30.
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Net Interest Margin (NIM): 4.65%, down from 5.02% in Q1 '25.
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Profit After Tax (PAT): INR 3,282 crores, down 7% year-on-year.
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Operating Profit Growth: 6% year-on-year.
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Gross NPA: 1.48% as of June 30.
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Net NPA: 0.34% with a provision coverage ratio of 77%.
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Credit Costs: 93 basis points for the current quarter.
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Consolidated Profit: INR 4,472 crores for Q1.
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Book Value Per Share: INR 829, up 17% year-on-year.
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Capital Adequacy Ratio: 23% with CET1 at 21.8%.
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Assets Under Management (AUM) Growth: 18% year-on-year to INR 750,000 crores.
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Kotak Securities Profit: INR 465 crores, up 16% year-on-year.
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Kotak AMC Profit: INR 326 crores, up 86% year-on-year.
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Kotak Life PAT: INR 327 crores, up 88% year-on-year.
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Kotak Prime PAT: INR 272 crores, up 17% year-on-year.
Release Date: July 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Kotak Mahindra Bank Ltd (BOM:500247) reported a healthy growth of 14% in net advances and 15% in deposits year-on-year.
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The bank's CASA ratio remains strong at 40.9%, indicating a stable deposit base.
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The bank's asset management business demonstrated strong performance with a 25% growth in assets under management.
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Kotak Mahindra Bank Ltd (BOM:500247) launched new credit card products, Solitaire and Kotak Indigo, to cater to affluent customers.
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The bank's private banking segment continues to report healthy growth in assets under management.
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The bank's net interest margin (NIM) decreased from 5.02% to 4.65% due to a 100 basis points reduction in the repo rate.
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Credit costs increased significantly, particularly in the microfinance sector, which has impacted overall profitability.
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There is stress buildup in the retail commercial vehicle segment, leading to cautious underwriting.
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The bank's unsecured advances share reduced from 11.6% to 9.7% as it tightened underwriting norms.
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Operating costs increased by 6% year-on-year, partly due to higher marketing spend and technology investments.
Q: Can you provide more details on the credit costs related to the Microfinance Institution (MFI) sector and its impact on the overall credit cost? A: Ashok Vaswani, CEO, explained that the MFI sector has been a significant contributor to the higher credit costs this quarter. The stress in the MFI sector began reflecting in the books from Q3 of last year, and the accumulated impact has resulted in higher credit costs for Q1 FY '26. The situation was exacerbated by issues in Karnataka earlier this year, but it is expected that the stress has peaked and will start tapering off.
