Kotak Mahindra Bank Reports 13% YoY Increase in Q4 Net Profit to Rs 4,027 Crore, Exceeds Market Estimates

Kotak Mahindra Bank Beats Consensus Estimates with 13.4 Percent Rise in Net Profit

Kotak Mahindra Bank reported a significant year-on-year rise in net profit at Rs 4,026.55 crore for the March quarter, surpassing Bloomberg consensus estimates of Rs 3,663 crore. This notable increase was disclosed in the bank's exchange filing.

The bank's core earnings, as measured by net interest income (NII), witnessed a rise of 8.1 percent on-year to Rs 7,876 crore, compared with Rs 7,284 crore in the year-ago period. Kotak Mahindra Bank's strong performance is a testament to its ability to maintain a steady growth trajectory.

Key financial highlights from the quarter include a 7 percent year-on-year increase in operating profit to Rs 5,855 crore and a 4.8 percent growth in interest income to Rs 14,175 crore. However, interest expense rose marginally by 0.9 percent to Rs 6,299 crore. On the other hand, other income declined by 2.1 percent year-on-year to Rs 3,116 crore.

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The bank's asset quality also showed signs of improvement, with gross non-performing assets (NPAs) declining to 1.20 percent from 1.30 percent in the previous quarter. Net NPAs also eased to 0.25 percent from 0.31 percent quarter-on-quarter. Furthermore, provisions declined sharply by 36 percent quarter-on-quarter to Rs 516 crore, supporting the bottom line.

In a separate development, Kotak Mahindra Bank's board recommended a dividend of Rs 0.65 per equity share of face value Re 1.