Kotak Mahindra Bank Q2 Results: Share Price Falls Even with 13% Profit Rise

Kotak Mahindra Bank Q2 Results FY25 reported 13% year-on-year growth in the consolidated profit after tax. Kotak Mahindra Bank Q2 result date was October 19, 2024. On October 21, 2024, the share price of Kotak Mahindra Bank reached a low of ₹1,735 from the previous trading day’s low of ₹1,848. In this blog, we’ll see one of India’s leading private sector bank’s Q2 FY25 earnings and its overall group performance.

Kotak Mahindra Bank Q2 Results 2024: Key Highlights

The share price of Kotak Mahindra Bank has delivered a negative return of 1.46% in the last 1 day (as on October 22, 2024). Here are the key highlights of the consolidated Kotak Mahindra Bank Q2 results FY25 and its YoY growth:

• Profit after Tax at ₹5,044 crores, up 13% YoY from ₹4,461 crores in Q2 FY24
• Return on Assets (ROA) at 2.53%, down from 2.68% Q2 FY24
• Return on Equity (ROE) at 13.88%, down from 14.99% Q2 FY24
• Customer Assets at ₹5,10,598 as on Q2 FY25, up 19% YoY from ₹4,28,404 as on Q2 FY24
• Capital Adequacy Ratio (CAR) at 22.6% as on Q2 FY25, down from 22.9% as on Q2 FY24
• Book value per share at ₹740 as on Q2 FY25, up from ₹605 as on Q2 FY24
• Total AUM at ₹6,80,838 crores as on Q2 FY25, up 37% YoY from ₹4,98,342 crores as on Q2 FY24

Kotak Mahindra Bank Q2 Results 2024: Group Companies Profit

According to the Kotak Mahindra Bank quarterly results for FY25, the bank’s standalone profit grew by 5% from Q2 FY24. In all the subsidiaries, the highest PAT growth was marked in Kotak Mahindra Capital at 226%. On the other hand, BSS Microfinance has registered an 85% YoY downfall in PAT in Q2 FY25.

Here is the summary of PAT performance in Kotak Mahindra Bank Q2 results FY25 and its subsidiaries:

Group Companies	PAT Q2 FY25	PAT Q2 FY24	YoY Change in PAT
Kotak Mahindra Bank	3,344	3,191	5%
Kotak Mahindra Prime	269	208	29%
Kotak Mahindra Investments	141	126	11%
Kotak Infrastructure Debt Fund	16	11	48%
BSS Microfinance	16	108	-85%
Kotak Securities	444	324	37%
Kotak Mahindra Capital	90	27	226%
Kotak Mahindra Life Insurance	360	247	46%

*(in ₹ crores)

Kotak Mahindra Bank Q2 Results 2024: Standalone Highlights

The summary of the standalone Kotak Mahindra Bank Q2 results for FY25:

• Net Interest Income at ₹7,020 crores, up 11% YoY
• Advances at ₹4,19,108 crores, up 17% YoY
• Average Total Deposits at ₹4,46,110 crores, up 16% YoY
• GNPA at 1.49% and NNPA at 0.43% as on Q2 FY25
• CASA Ratio at 43.6% as on Q2 FY25

Key Metrics	Q2 FY25	Q2 FY24	YoY Change
Net Interest Income	₹7,020 crores	₹6,297 crores	11%
Operating Profit	₹5,099 crores	₹4,610 crores	11%
Customer Assets	₹4,50,064 crores	₹3,80,412 crores	18%
Advances	₹4,19,108 crores	₹3,57,012 crores	17%
Average Total Deposits	₹4,46,110 crores	₹3,85,950 crores	16%
Average Current Deposits	₹61,853 crores	₹58,351 crores	6%
Average Savings Deposits	₹1,24,823 crores	₹1,21,967 crores	2%
Customer Count	5.2 crores	4.6 crores	Down 0.6 crores
GNPA	1.49%	1.72%	-13.37%
NNPA	0.43%	0.37%	16.22%
ROA	2.17%	2.45%	-11.43%

Conclusion

Kotak Mahindra Bank quarterly results for Q2 FY25 posted a good rise in profit, AUM, and deposits along with strong growth in the overall Kotak Group performance. As of the end of September 30, 2024, the bank had 2,013 branches and 3,329 ATMs including branches in GIFT City and DIFC (Dubai). In the last 1-year, the share price of Kotak Mahindra Bank has generated a negative return of 0.36% (as on October 22, 2024).

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Reference
https://www.kotak.com/content/dam/Kotak/investor-relation/Financial-Result/QuarterlyReport/FY-2025/q2/investor-presentation/Q2FY25-Investor-Presentation.pdf

Author: All Content is verified by SMC Global Securities.