Yahoo Finance

• Average Advances Growth: 18% year-on-year in FY25.

• End-of-Period Advances Growth: 13% year-on-year.

• Total Average Deposits Growth: 16% year-on-year in FY25.

• CASA Ratio: 43%.

• Cost of Funds: 5.10% for full year FY25.

• CD Ratio: 85.5% at the end of the period.

• Consolidated Profit: INR 22,126 crores, up 21% year-on-year.

• Consolidated Net Worth: INR 157,395 crores at March end.

• Book Value Per Share Growth: 21% year-on-year.

• Consolidated Customer Assets: INR 537,000 crores, 12% higher than last year.

• AUM Managed by Group: INR 669,000 crores, grew by 20% over the year.

• Capital Adequacy (Consolidated): 23.3% with CET1 at 22.3%.

• ROE (Consolidated): 13.12% for FY25.

• ROA (Consolidated): 2.36% for FY25.

• Stand-alone Bank Profit: INR 16,450 crores, up 19% year-on-year.

• Stand-alone Bank ROA: 2.2% for the quarter and full year.

• Stand-alone Bank Capital Adequacy: 22.2% with CET1 at 21.1%.

• Advances Growth (Stand-alone): INR 444,000 crores, up 13% year-on-year on EOP basis.

• NIM for the Year: 4.96%, lower by 36 bps year-on-year.

• Gross NPA: 1.42% at March 31.

• Net NPA: 0.31% with PCR improved to 78%.

• Slippage in Q4: INR 1,488 crores.

• Credit Costs for Q4: 64 bps.

• Kotak Securities Full-Year Profit: INR 1,640 crores, up 34% year-on-year.

• Kotak AMC Full-Year Profit: INR 977 crores, up 86% year-on-year.

• Kotak Mahindra Capital Full-Year Profit: INR 361 crores, up 68% year-on-year.

• Kotak Life Embedded Value Growth: 16% to INR 17,612 crores.

• Branches Added in FY25: 200 branches.

• Warning! GuruFocus has detected 3 Warning Sign with BOM:500247.

Release Date: May 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kotak Mahindra Bank Ltd (BOM:500247) reported a consolidated profit growth of 21% year-on-year, reaching INR22,126 crores.

• The bank's capital market businesses had a stellar year, with asset management business profit growing by 75% and capital market businesses by 40% year-on-year.

• The CASA ratio stood at a healthy 43%, optimizing the cost of funds at 5.10% for the full year.

• The bank's average advances grew by 18% year-on-year, aligning with its strategy to grow at 1.5 to 2 times the nominal GDP growth.

• Kotak Mahindra Bank Ltd (BOM:500247) successfully navigated the RBI embargo, maintaining cost estimates and launching new digital banking apps.

Negative Points

• The technology embargo impacted the Cards and 811 businesses, leading to a decline in the share of unsecured loans from 11.8% to 10.5%.

• The microfinance industry faced significant credit strains, resulting in a 33% year-on-year reduction in the retail microfinance book.

• Higher delinquencies were observed in unsecured personal loans and credit cards, necessitating tighter underwriting standards.

• Credit costs increased to 60 basis points from 40 basis points last year, reflecting challenges in the unsecured business environment.

• The bank's unsecured retail advances decreased due to slowed disbursements in microfinance and credit card businesses.