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View Promises →Kotak Mahindra Bank Limited — Q4 FY25
Kotak Mahindra Bank's Q4 FY25 standalone PAT came in at INR 3,552 crore, though the year-ago quarter included one-offs.
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Kotak Mahindra Bank's Q4 FY25 standalone PAT came in at INR 3,552 crore, though the year-ago quarter included one-offs. The bank navigated the RBI tech embargo and elevated credit costs in unsecured and microfinance segments. NIM improved sequentially to 4.97% on savings rate cuts, while credit cost moderated to 64 bps from 68 bps QoQ. Average advances grew 18% YoY and average deposits 16% YoY, with CASA at 43%. Management guided for asset growth at 1.5-2x nominal GDP and expects microfinance stress to persist for two more quarters. Key risks include global uncertainties from trade tariffs and potential further deterioration in microfinance asset quality.
कोटक महिंद्रा बैंक का चौथी तिमाही का मुनाफा 3,552 करोड़ रुपये रहा, लेकिन पिछले साल की इसी तिमाही में एक बार के फायदे थे। बैंक ने RBI के तकनीकी प्रतिबंध और असुरक्षित कर्ज व माइक्रोफाइनेंस में बढ़ी लागत को संभाला। ब्याज दरों में कटौती से बैंक का शुद्ध ब्याज मार्जिन बढ़कर 4.97% हो गया, जबकि कर्ज की लागत 0.68% से घटकर 0.64% रही। औसत कर्ज 18% और जमा 16% बढ़े, जिसमें 43% चालू व बचत खाते हैं। प्रबंधन का कहना है कि कर्ज वृद्धि देश की अर्थव्यवस्था से 1.5-2 गुना रहेगी और माइक्रोफाइनेंस में दिक्कतें दो तिमाही और रहेंगी। मुख्य जोखिम हैं वैश्विक व्यापार शुल्क और माइक्रोफाइनेंस कर्ज की गुणवत्ता में गिरावट।
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Global trade and tariff uncertainties
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Read Transcript →Quarter Snapshot
CASA Ratio
43%
flat YoY
CASA ratio remained healthy at 43% as of March 2025, with fixed-rate SA growing 2% QoQ.
Unsecured Retail Advances Share
10.5%
-130bps YoY
Share of unsecured loans declined from 11.8% in FY24 to 10.5% in FY25 due to embargo and tighter underwriting.
Credit Cost (Standalone Bank)
64 bps
-4bps QoQ
Credit cost for Q4 was 64 bps vs 68 bps in Q3, driven by recoveries in secured businesses.
Consolidated PAT (FY25)
INR 22,126 crore
+21% YoY
Consolidated profit grew 21% YoY, including INR 3,013 crore gain from KGI divestment.
What Changed vs Last Quarter
NEW
Microfinance credit cost elevated for two more quarters
Management expects microfinance credit costs to remain elevated for the next two quarters before normalizing.
NEW
Unsecured credit card stress to decline in H2 FY26
Management expects credit card delinquencies to plateau and then decline in the second half of FY26.
UPDATED
Asset growth at 1.5-2x nominal GDP
Management reiterated its philosophy to grow advances at 1.5 to 2 times nominal GDP growth, targeting sustainable franchise building.
DROPPED
Standard Chartered portfolio migration in Q4
The acquired Standard Chartered portfolio is expected to be fully migrated onto Kotak's books during Q4 FY25.
DROPPED
Credit card and PL growth post-embargo
Once the RBI embargo is lifted, the bank plans to aggressively grow credit cards and personal loans, aiming to restore unsecured mix.
DROPPED
Cost optimization to improve ROA
Management expects cost control measures and fee income growth to support ROA above 2% as credit costs normalize.
NEW RISK
Global trade and tariff uncertainties
Management flagged risks from global trade/tariff arrangements and geopolitical issues that could impact the business environment.
NEW RISK
Credit card portfolio vintages carry higher risk
CFO acknowledged that Kotak's credit card book is newer than peers, naturally carrying higher delinquencies, which may persist.
RISK GONE
RBI embargo duration uncertainty
Management could not provide a timeline for lifting the embargo, which continues to restrict credit card issuance and digital onboarding.
RISK GONE
Macroeconomic slowdown impact on asset quality
Economic slowdown and volatility could lead to contagion in other portfolios, though no stress is currently visible in secured books.
RISK GONE
Kotak Prime margin pressure and two-wheeler delinquencies
Kotak Prime (car finance) faces margin compression and higher delinquencies in two-wheelers, impacting subsidiary profitability.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q2 FY25
Management expects credit costs to stabilize and then decline over the next 2-3 quarters as recoveries from secured and rural books offset slippages.
Mentioned in Q1 FY25, Q3 FY25
Management could not provide a timeline for lifting the embargo, which continues to restrict credit card issuance and digital onboarding.
Mentioned in Q1 FY25, Q4 FY24
Credit costs rose to 55bps annualized, driven by delinquencies in lower-ticket credit cards and microfinance; management tightened norms but risk remains.
Mentioned in Q1 FY25, Q4 FY24
Management reiterated goal to reach mid-teens as a percentage of total advances once the RBI embargo is lifted.
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Guidance and risk preview
Management reiterated its philosophy to grow advances at 1.5 to 2 times nominal GDP growth, targeting sustainable franchise building.
Management flagged risks from global trade/tariff arrangements and geopolitical issues that could impact the business environment.
View Risks →