Kotak Mahindra Bank Q1 Update: Net Advances Rise 4%, Deposits Up Nearly 3%

Kotak Mahindra Bank’s net advances rose 4.2% sequentially to Rs 4.45 lakh crore in April-June, according to provisional numbers disclosed by the lender on Monday. On a year-on-year basis, it advanced by 14%.

The bank's total deposits were also up, as they rose 2.8% sequentially and 14.6% on-year to Rs 5.13 lakh crore.

On the other hand, the current account and savings account, or CASA fell 2.2% sequentially to Rs 2.10 lakh crore. However, it rose 7.9% year-on-year.

Kotak Mahindra Bank reported a fall in its fourth-quarter standalone net profit on the back of higher provisions made for its distressed microfinance institution loan book.

The lender's net profit dipped 14% year-on-year to Rs 3,552 crore in the quarter ended March 31, 2025. Analysts polled by Bloomberg estimated the private sector bank's profit after tax to be at Rs 3,606 crore.

The net interest income rose over 5% year-on-year to Rs 7,284 crore. Consequently, net interest margins were 4.97% as of March-end, higher than 4.93% a quarter ago.

The private sector bank's asset quality was largely stable, with the gross non-performing assets ratio falling to 1.42% as of March quarter compared with 1.5% in the previous quarter. The net NPA ratio fell to 0.31% from 0.41% in the prior quarter.

As at March 31, provision coverage ratio stood at 78%. Fresh slippages fell to Rs 1,488 crore from Rs 1,657 crore a quarter ago.

The business update was shared after market hours. The stock settled 0.94% higher at Rs 2,149.80 apiece on the NSE, compared to a flat close in the benchmark Nifty 50.

Kotak Mahindra Bank's shares have risen 16.04% over the past 12 months and 20.37% year-to-date.

Out of 44 analysts tracking the stock, 27 have a 'buy' rating, 12 suggests a 'hold,' and five recommend a 'sell.' The average of 12-month analysts' price target of Rs 2,351.51 implies a potential upside of 9.4% from its previous closing.