Kotak Mahindra Bank Share Price Gains for the 3rd Straight Day; Up 2%

On January 02, 2025, Kotak Mahindra Bank’s share price traded at 2.04% higher at ₹1,824.70 at 12:05 PM on the NSE. The stock opened at ₹1,800 higher than ₹1,788.40 at its previous close. The stock gained close to 3% in the last 2 trading sessions.

What’s Driving the Share Price Higher?

As per the news reports, there is optimism about Kotak Mahindra Bank’s future performance. The bank’s recent progress, particularly in overcoming past regulatory challenges, is seen as a positive factor. With the lifting of certain restrictions and a focus on medium-term growth.

Q2 FY25 Financial Highlights

In Q2 FY25, Kotak Mahindra Bank reported a 4.8% year-on-year (YoY) increase in net profit, reaching ₹3,343.7 crore compared to ₹3,191 crore in Q2 FY24. The net interest income (NII) saw a healthy growth of 11% YoY, rising to ₹7,020 crore from ₹6,297 crore in the same quarter last year.

The net interest margin (NIM) stood at 4.91% in Q2 FY25. Fees and services income also experienced an increase of 14% YoY, amounting to ₹2,312 crore compared to ₹2,026 crore in Q2 FY24. The operating profit for the quarter grew by 11% YoY, reaching ₹5,099 crore from ₹4,610 crore in the previous year.

In terms of asset quality, the gross non-performing assets (GNPA) stood at 1.49% in Q2 FY25, while net non-performing assets (NPA) were at 0.43%. Provisions for the quarter amounted to ₹660.39 crore, marking a rise from ₹366.55 crore in Q2 FY24.

The bank’s consolidated capital adequacy ratio (CAR) stood at 22.6%, with a consolidated net worth of ₹147,214 crore as of September 30, 2024. Additionally, consolidated customer assets rose by 19% YoY, reaching ₹510,598 crore, while total assets under management (AUM) grew by 37% YoY, amounting to ₹680,838 crore.

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