Kotak Mahindra Bank has reported a 14% year-on-year decline in its Q4FY25 standalone net profit, falling to ₹3,552 crore, missing analyst expectations. The drop is attributed to higher provisions for bad loans, particularly in the microfinance segment.
Despite the profit decline, the bank saw strong loan and deposit growth, with advances rising 13% YoY and deposits increasing 15% YoY. However, the net interest margin (NIM) narrowed to 4.97%, reflecting pressure on profitability.
CEO Ashok Vaswani acknowledged challenges in the microfinance portfolio, which led to elevated credit costs. He noted that the bank has reduced its exposure to the segment, bringing it down to 1.6% of net advances from 2.5% of total assets.
In a positive development, Kotak Mahindra Bank benefited from the lifting of the Reserve Bank of India’s (RBI) 10-month technology embargo in February, allowing it to resume credit card issuance and digital client onboarding.
The bank’s board of directors has announced a dividend of ₹2.50 per share, pending shareholder approval at the upcoming annual general meeting.
Stay tuned for further updates on Kotak Mahindra Bank’s financial performance.
