Kotak Mahindra Bank Q2 posts 11% YoY growth in Net Interest Income, PAT up 4.8% at ₹3,344 crore: 5 Key takeaways

The bank’s standalone profit after tax (PAT) in Q2FY25 increased 4.8% year-on-year to ₹3,344 crore from ₹3,191 crore in the year-ago quarter, the lender informed the stock exchanges in a filing.

Kotak Mahindra Bank’s standalone net profit missed the market estimates of 10% YoY growth in the range of ₹3,375 to ₹3,560 crore in Q2FY25.

On a consolidated level, the net profit of Kotak Mahindra Bank, including its subsidiaries, rose 13% YoY to ₹5,044 crore, as per the filing.

Here are the five key takeaways from the Kotak Mahindra Bank Q2 results.

Net Interest Income

The net interest income of the bank Q2 was up by 11% to ₹7,020 crore in the quarter ended September 2024, as compared to ₹6,297 crore in the quarter ended September 2023. NII is the difference between the interest income a lender gets from its lending activities and the interest it pays out to its customers.

The NII was in line with the street estimates of ₹6850 to ₹7150 crore with a growth in the range of 10-12% YoY.

Net Interest Margin

The net interest margin, which indicates the profitability of the bank’s lending activities, however, went down during this period as compared to the same period a year ago. The NIM in Q2FY25 was recorded at 4.91% compared to 5.22% in Q2FY24, according to the stock exchange filing.

Asset Quality declines

The Gross Non-Performing Assets (GNPAs) of the bank improved during this quarter. The GNPAs of the bank improved to 1.49% from 1.72% on a year-on-year basis. However, the net NPA rose to 0.43% from 0.37% YoY, indicating a marginal drop in asset quality.

Capital Adequacy Ratio

Capital Adequacy Ratio of the Kotak Mahindra Bank, as per Basel III, as on September 30, 2024, was 22.6%, the filing showed. The Capital Adequacy Ratio indicates the financial stability of the bank.

Deposits and CASA Ratio

Deposits at the bank increased 16% on a year-on-year basis. Kotak Mahindra Bank reported a deposit of 4,46,110 crore for the quarter ended September 2024, as against ₹3,85,950 crore for the quarter ended September 2023.

The CASA ratio, or current and savings account ratio, of the bank stood at 43.6% compared to 43.4% in the June quarter.