Kotak Mahindra Bank's Q2 profit Surges 13% To Rs 5,044 Cr
Subsidiaries and strong lending boost growth amid improved asset quality
Kotak Mahindra Bank rev aled its financial results for the second quarter of the fiscal year 2024-25, showcasing a consolidated profit after tax (PAT) of Rs5,044 crore, a significant 13 per cent year-on-year (YoY) increase from Rs4,461 crore in the same period last year.
According to the exchange filing, the results were approved during the Board of Directors meeting held today in Mumbai. The bank's standalone PAT for Q2 FY25 stood at Rs3,344 crore, reflecting a 5 per cent growth compared to Rs3,191 crore in Q2 FY24.
The quarter saw the bank's Net Interest Income (NII) rise by 11 per cent YoY to Rs7,020 crore, while the Net Interest Margin (NIM) was maintained at 4.91 per cent.
Operating profit for the quarter reached Rs5,099 crore, registering an 11 per cent increase from the same period last year. These metrics highlight the bank's sustained growth momentum in its core banking operations.
Kotak Mahindra Bank's subsidiaries also delivered strong performances, contributing significantly to the consolidated PAT. Kotak Securities reported a PAT of Rs 444 crore, a 37 per cent increase from Q2 FY24.
Similarly, Kotak Mahindra Life Insurance posted a PAT of Rs360 crore, up 46 per cent YoY, while Kotak Mahindra Prime recorded a PAT of Rs 269 crore, reflecting a 29 per cent YoY growth. These contributions underscore the bank's diversified financial services portfolio.
As of September 30, 2024, the bank's customer base expanded to 5.2 crore, up from 4.6 crore in the previous year. The bank's customer assets, which comprise advances and credit substitutes, grew by 18 per cent YoY to Rs450,064 crore, demonstrating strong growth in lending activities.
The asset quality showed improvement, with the Gross Non-Performing Assets (GNPA) ratio declining to 1.49 per cent from 1.72 per cent in the previous year, while the Net NPA stood at 0.43 per cent.
Kotak Mahindra Bank's deposit base also exhibited robust growth, with average total deposits rising by 16 per cent YoY to Rs 446,110 crore.
Average term deposits grew substantially by 26 per cent YoY to Rs 259,434 crore, while the Current Account and Savings Account (CASA) ratio was maintained at a healthy 43.6 per cent. The bank's capital adequacy ratio, as per Basel III norms, remained strong at 22.6 per cent, with a Common Equity Tier 1 (CET1) ratio of 21.7 per cent.
The consolidated financial performance for Q2 FY25 showed an annualized Return on Assets (ROA) of 2.53 per cent, slightly lower than 2.68 per cent in the same period last year, and an annualized Return on Equity (ROE) of 13.88 per cent, compared to 14.99 per cent in Q2 FY24.
Total assets under management surged by 37 per cent YoY to Rs 680,838 crore, driven by a remarkable 60 per cent growth in Kotak Asset Management's domestic equity AUM, which reached Rs319,161 crore as of September 30, 2024.
Strategic achievements during the quarter included gains from the divestment of Kotak General Insurance (KGI), which contributed to an increase in net worth, now standing at Rs 147,214 crore.
Additionally, regulatory adjustments from the Reserve Bank of India concerning investment valuation added Rs 4,777 crore to the bank's reserves. (ANI)
