Kotak Mahindra Bank is a diversified financial services group providing a wide range of banking and financial services including Retail Banking, Treasury and Corporate Banking, Investment Banking, Stock Broking, Vehicle Finance, Advisory services, Asset Management, Life Insurance and General Insurance. Founded in 1985, it has grown to become one of the country's most prominent banking institutions, with a strong presence in various financial sectors.
The company ranks 4th in both deposit and gross advances market share. As of the latest available data, the bank has a market cap of ₹4,23,472 crore. The bank has established itself as a technology-forward institution while maintaining strong traditional banking fundamentals.
Kotak Mahindra Bank reported mixed financial results for the fiscal year 2024-25. In the full year, consolidated net profit stood at Rs 22,126 crore, up 21.5 per cent Y-o-Y, because of one-time gain of Rs 3,013 crore from divestment in Kotak General Insurance (pre-tax gain was Rs 3,803.40 crore). Excluding the gain, the consolidated net profit was up 5 per cent Y-o-Y to Rs 19,113 crore in FY25.
For the fourth quarter of FY25, the bank faced some challenges. Private sector lender Kotak Mahindra Bank reported a 7.5 per cent year-on-year (YoY) drop in consolidated profit after tax to Rs 4,933 crore in the January–March quarter of the financial year 2024-25 (Q4FY25). On a standalone basis, which represents the banking operations, the net profit was down 14 per cent Y-o-Y to Rs 3,552 crore in Q4FY25, due to a significant rise in provision and contingencies.
Key financial metrics for FY25 include:
- Consolidated Profit: INR 22,126 crores, up 21% year-on-year
- Stand-alone Bank Profit: INR 16,450 crores, up 19% year-on-year
- ROE (Consolidated): 13.12% for FY25
- ROA (Consolidated): 2.36% for FY25
- NIM for the Year: 4.96%, lower by 36 bps year-on-year
The bank demonstrated robust growth across its core banking operations. Average Advances Growth: 18% year-on-year in FY25, while Total Average Deposits Growth: 16% year-on-year in FY25. Advances reported a 13 per cent Y-o-Y increase to Rs 4.44 trillion in Q4FY25; average advances grew 18 per cent Y-o-Y in FY25.
The bank maintained healthy deposit metrics with its average total deposits grew 15 per cent Y-o-Y to Rs 4.68 trillion. The current account savings account (CASA) ratio as at March 31, 2025, stood at 43 per cent compared to 42.3 per cent as at December 31, 2024 and 45.5 per cent a year ago. The bank's credit to deposit ratio stood at 85.5 per cent at the end of March 31, 2025, compared to 87.4 per cent at the end of December 2024 and 83.8 per cent a year ago.
The bank maintains strong asset quality parameters. Gross NPA: 1.42% at March 31. Net NPA: 0.31% with PCR improved to 78%. Net NPA ratio during this period stood at 0.31 per cent, down from 0.41 per cent at the end of December 2024. The bank has been managing credit costs effectively, though credit costs increased to 60 basis points from 40 basis points last year, reflecting challenges in the unsecured business environment.
Kotak Mahindra Bank operates through multiple business segments with strong market positions. Its securities broking business held an 11.8% market share in FY24, while the asset management business had a 6.5% market share. The subsidiary businesses performed well during FY25:
- Kotak Securities Full-Year Profit: INR 1,640 crores, up 34% year-on-year
- Kotak AMC Full-Year Profit: INR 977 crores, up 86% year-on-year
- Kotak Mahindra Capital Full-Year Profit: INR 361 crores, up 68% year-on-year
- Kotak Life Embedded Value Growth: 16% to INR 17,612 crores
The bank has been investing in technology and digital transformation while navigating regulatory challenges. Kotak Mahindra Bank Ltd successfully navigated the RBI embargo, maintaining cost estimates and launching new digital banking apps. However, the technology embargo impacted the Cards and 811 businesses, leading to a decline in the share of unsecured loans from 11.8% to 10.5%.
The bank added 200 branches in FY25, demonstrating its commitment to expanding physical presence alongside digital capabilities. The bank has also been focusing on sustainable practices, with Kotak Mahindra Bank's ESG rating upgraded to 'AA' from 'A' by MSCI on June 25, 2025.
The bank maintains a strong capital position with Capital Adequacy (Consolidated): 23.3% with CET1 at 22.3%. Consolidated Net Worth: INR 157,395 crores at March end, and Book Value Per Share Growth: 21% year-on-year.
The bank's board has recommended a dividend of Rs 2.50 per equity share for the year ended March 31, 2025, subject to approval of shareholders. This reflects the bank's commitment to returning value to shareholders while maintaining adequate capital for growth.
The bank continues to focus on diversified revenue streams and maintaining its position as one of India's leading private sector banks, with a strong emphasis on technology, customer service, and sustainable growth across all business segments.
