Kotak Bank Q3 Results: PAT up 10% YoY to Rs 3,305 crore, NII up 10%

Kotak Mahindra Bank, India’s third-largest private bank by market capitalization, on Saturday reported a 10 per cent increase in net profit for the December quarter to Rs 3.35 billion compared to Rs 3.05 billion in the same period last year. Interest earned by the lender in Q3 FY25 was Rs 13,427.8 billion, an increase of 14% compared to Rs 11,799 billion in the corresponding quarter of the previous financial year.

Kotak Bank paid Rs 6,231.33 crore as interest in the reported quarter, which was 19% higher than Rs 5,245 crore reported in the year-ago period.

Net interest income (NII) for Q3 FY25 increased to Rs 7,196 crore from Rs 6,554 crore in Q3 FY24, an increase of 10% year-on-year. Additionally, the net interest margin (NIM) for Q3FY25 was 4.93%.

On a quarter-on-quarter basis, the bank’s reported profit after tax in Q2 FY25 decreased by 1.2% to 334.4 billion yen.

Fees and services increased to Rs 2,362 crore in Q3 FY25, up 10% from Rs 2,144 crore in the year-ago period.

Kotak Bank consolidated results

Consolidated PAT for 3QFY25 increased to 470.1 billion rupees from 426.5 billion rupees in 3QFY24, an increase of 10% YoY; Rs.

At the consolidated level, the annualized return on assets (ROA) for the third quarter of FY25 was 2.30% compared to 2.46% for the third quarter of FY24. Return on equity (ROE) for Q3FY25 was reported at 12.43% on an annualized basis, down from 13.83% in Q3FY24.

3rd quarter deposits

Average total deposits increased by 15% year-on-year to Rs 4,58,614 crore in Q3 FY25 compared to Rs 3,98,908 crore in Q3 FY24. Average current account balances increased by 12% year-on-year to Rs 66,589 crore in Q3 FY25 compared to Rs 59,337 crore in Q3 FY24.

Meanwhile, average savings deposits increased by 1% year-on-year to Rs 1,24,282 crore in Q3 FY25 compared to Rs 1,23,227 crore in Q3 FY24. Average fixed deposits increased by 24% year-on-year to Rs 2,67,743 crore in Q3 FY25 compared to Rs 2,16,344 crore in Q3 FY24.

Advance to Q3

Customer assets comprising advances and credit substitutes increased by 15% YoY from Rs 4,07,590 crore as on December 31, 2023 to Rs 4,59,436 crore as on December 31, 2024 did. Of this, advances amounted to 459,436 million rupees, an increase of 16% from the previous year. 4,333,386 billion in Q3 FY2025 to JPY 37,246.4 billion in Q3 FY2024.

Unsecured retail advances (including retail microcredit) as a percentage of net advances was 10.5% at December 31, 2024.

asset quality

As on December 31, 2024, Kotak Bank’s gross NPAs (GNPAs) were 1.50% and net NPAs (NNPAs) were 0.41%. As of December 31, 2023, GNPA was 1.73% and NNPA was 0.34%.

As of December 31, 2024, the Supply Coverage Ratio (PCR) was 73%. The bank’s equity ratio was 22.8%, and its CET1 ratio was 21.7%.

CASA ratio/CDR

The CASA ratio as of December 31, 2024 was 42.3%, and the credit-to-deposit ratio as of December 31, 2024 was 87.4%.