Financial Highlights

1. Quarterly Performance:

   INR Crores

   Metric	Mar 25	Dec 24	Mar 24	YoY %	QoQ %
   Revenue	27,174	23,946	27,907	▼ 3%	▲ 13%
   Operating Profit	4,051	1,133	5,976	▼ 32%	▲ 258%
   Profit After Tax	4,933	4,701	5,337	▼ 8%	▲ 5%

   Insights:

   1. Financial Performance
      - Consolidated PAT stood at ₹4,933 crore, up 5% QoQ.  
      - Standalone Bank PAT was ₹3,552 crore, though it declined 14% YoY due to higher provisions and one-off gains in the previous year.  
      - ROE for the quarter was 12.90%, with a book value per share increasing by 21% YoY to ₹792.  

   2. Advances and Deposits Growth
      - Average advances grew by 18% YoY, while end-of-period advances rose by 13%.  
      - Average deposits increased by 16% YoY, with a CASA ratio of 43%. The bank maintained a healthy CD ratio of 85.5%.  

   3. Asset Quality 
      - Gross NPA improved to 1.42%, and Net NPA stood at 0.31%.  
      - Provision coverage ratio (PCR) strengthened to 78%. Credit cost for the quarter was 0.64%, reflecting elevated provisions in unsecured loans and microfinance.  

   4. Subsidiaries Performance 
      - Capital Market and Asset Management subsidiaries delivered strong growth, with Kotak AMC PAT up 86% YoY and Kotak Securities PAT up 34% YoY. 
      - Kotak Mahindra Prime reported a PAT growth of 34% YoY, driven by robust disbursements.  

   5. Strategic Initiatives
      - The bank resumed its credit card and 811 digital acquisition engines post the RBI embargo, focusing on affluent and mass-affluent segments.  
      - Launched the "Hausla Hai Toh Ho Jayega" brand campaign to unify the group's offerings and deepen customer relationships. 

2. Segment Wise Revenue

3. Geography Revenue

Key Ratios

Management Updates

1. Unsecured lending growth slowed to 10-12% YoY across the industry, down from ~25% earlier, as banks tightened underwriting standards post-RBI warnings.  

2. Microfinance delinquencies rose sharply, prompting Kotak to cut its retail microfinance book by 33% YoY while assessing if the stress is cyclical or structural.  

3. Mortgage and secured loans outperformed, with home loans/LAP growing 19% YoY, benefiting from stable asset quality and deeper customer relationships.  

4. Tractor financing rebounded 17% YoY in Q4 due to better monsoon conditions, though commercial vehicle loans remained weak (-3% YoY) amid reduced government spending.  

5. Deposit competition eased with improved liquidity, allowing banks to optimize funding costs through CASA (43% ratio) and retail term deposits (+16% YoY).

Managment Guidance

Guidance Tracker

Shareholding Pattern

Red Flags

Red Flag Parameter	Status	Severity
Management Changes	Appointment of Bhavnish Lathia as CTO in March 2025
Auditor Exit	No Changes
Credit Rating	No Changes
Share Holding Pattern	No Major Changes
Liquidity	Adequate

Conclusion

Kotak Mahindra Bank's Q4 FY25 showed robust secured loan growth (19% YoY) and stable asset quality (GNPA 1.42%), supported by strong subsidiary performance. However, unsecured loan stress (credit costs 64bps) and microfinance challenges persist. While digital initiatives progress, SA rate cuts may pressure margins. The bank's solid capital (CET-1 21.1%) positions it well for FY26 amid sector headwinds.

Key Positives:

1. Strong Growth in Advances (18% YoY) – Outpaced industry, especially in secured loans (mortgages/LAP up 19%).
2. Stable Asset Quality – GNPA at 1.42% (improved QoQ), PCR strengthened to 78%.
3. Margin Resilience (NIM 4.97%) – Despite rate cuts, optimized funding mix (CASA 43%, ActivMoney +46% YoY).

Key Negatives:

1. Unsecured Loan Stress – Credit costs elevated (64 bps in Q4); personal loan/card delinquencies still high.
2. Microfinance Challenges – Book reduced 33% YoY due to industry-wide stress; credit costs may persist for 2 quarters.
3. SA Rate Compression – Cuts to 2.75–3.25% may pressure margins if deposit competition intensifies.