India · Delayed Price · Currency is INR Kotak Mahindra Bank Earnings Call Transcripts
Fiscal Year 2026
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Net advances and deposits grew 16% and 15% year-over-year, respectively, with strong performance across consumer, SME, and wholesale segments. Asset quality improved, credit costs declined, and subsidiaries contributed 30% of consolidated profits. NIM remained stable at 4.5%.
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Q2 saw 16% YOY growth in advances and 15% in deposits, with NIM at 4.54% and credit costs down to 79 bps. Asset quality improved, OpEx remained flat, and subsidiaries contributed 27% to profits. Cautious on retail CV, but expect NIM and credit costs to improve in H2.
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Net advances and deposits grew 14% and 15% YoY, but higher credit costs, especially in microfinance and retail commercial vehicles, led to a 7% YoY decline in PAT. NIM compressed to 4.65%, with stabilization expected as deposit repricing flows through.
Fiscal Year 2025
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Consolidated profit rose 21% YoY to INR 22,126 crore, with strong growth in capital markets and asset management. Advances and deposits grew robustly, while credit costs increased, especially in microfinance. Strategic focus remains on customer-centricity and prudent risk management.
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Q3 saw 15% growth in advances and 16% in deposits, with stable NIM and strong profit growth. Asset quality remained robust, though microfinance and retail CVs showed higher delinquencies. Digital embargo impacted unsecured growth, but capital market subsidiaries delivered record profits.
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Q2 FY25 saw 13% YOY profit growth, strong subsidiary performance, and robust deposit and asset growth. Credit stress in unsecured retail and microfinance is being managed, with expectations of stabilization and recovery in H2. CASA ratio remains industry leading at 43.6%.
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Q1 saw strong YoY growth in advances and deposits, robust subsidiary performance, and a major insurance divestment. NIM declined due to higher funding costs and lower unsecured lending, while credit costs rose in unsecured retail. Progress on RBI compliance and tech upgrades remains on track.