India · Delayed Price · Currency is INR Kotak Mahindra Bank Earnings Call Transcripts
Fiscal Year 2027
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Profit after tax grew 23% year-on-year, with strong asset and deposit growth, stable margins, and improved asset quality. Strategic acquisition of Deutsche Bank's India retail and wealth businesses is expected to be ROE accretive. Subsidiaries contributed 33% of consolidated profits.
Fiscal Year 2026
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Q4 saw strong YoY growth in advances and deposits, improved asset quality, and robust capital ratios, despite market volatility and geopolitical risks. NIM is expected to decline gradually in FY 2027, with stable credit costs and continued focus on digital and cost efficiencies.
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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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Net advances and deposits grew 16% and 15% YOY, with strong SME and digital-led retail momentum. NIM stabilized at 4.54%, credit costs moderated, and asset quality improved. Subsidiaries' profit contribution declined due to one-off GST impact and lower capital market volumes.
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Net advances and deposits grew 14% and 15% YoY, but NIM declined to 4.65% due to repo rate cuts and product mix. Credit costs peaked in microfinance and retail CV, with stabilization expected ahead. Operating profit rose 6% YoY, but PAT fell 7% YoY to INR 3,282 crore.
Fiscal Year 2025
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Consolidated profit rose 21% YoY, driven by strong asset management and capital markets growth, while average advances and deposits grew 18% and 16% YoY, respectively. Credit costs remain elevated in microfinance, but margin improvement is expected as deposit repricing continues.
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Advances and deposits grew 15–16% year-over-year, with stable margins and strong capital ratios. Asset quality remained robust, though microfinance and unsecured retail segments showed elevated delinquencies. Progress on regulatory compliance and digital transformation continues.
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Q2 FY25 saw 13% YOY profit growth, strong subsidiary performance, and robust capital adequacy. Asset growth was led by secured lending, while unsecured and microfinance segments faced stress. Margins declined due to asset mix, but are expected to improve with rate cuts and portfolio acquisitions.
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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.