Kotak Mahindra Bank Q1 profit up 79% to Rs7,448cr

Growth was bolstered by gains from divesting a 70% stake in Kotak General Insurance

MUMBAI: Kotak Mahindra Bank announced a consolidated net profit of Rs7,448 crore for the first quarter of FY25 (Q1 FY25), marking a 79 per cent increase from the same period last year when it reported Rs 4,150 crore. This growth was bolstered by gains from divesting a 70 per cent stake in Kotak General Insurance Company to Zurich Insurance Group.

On a standalone basis, the private sector lender reported a net profit of Rs6,250 crore in Q1 FY25, up from Rs 3,452 crore in Q1 FY24. Net interest income (NII), which reflects the difference between interest earned and interest expended, grew by 10 per cent to Rs6,842 crore in Q1 FY25 compared to Rs6,234 crore in Q1 FY24. However, the Net Interest Margin (NIM) declined to 5.02 per cent from 5.57 per cent a year earlier, as per the analyst presentation submitted to the stock exchange (BSE).

The bank highlighted a 23 per cent year-on-year increase in fees and services income to Rs2,240 crore in Q1 FY25, up from Rs1,827 crore in Q1 FY24. As of June 30, 2024, the bank’s advances grew by more than 20 per cent year-on-year to Rs4.05 trillion. Specifically, the home loans and loan against properties (LAP) portfolio expanded by 17 per cent year-on-year to Rs1.10 trillion, while the credit card book saw a 29 per cent year-on-year growth to Rs14,644 crore. Corporate loans also grew by 21 per cemt year-on-year to Rs93,581 crore.