Kotak Mahindra Bank Shares Fall Over 5% After Weak Q4 Results

Market Performance

Kotak Mahindra Bank shares fell over 5% on May 5, closing at ₹2,065 per share. The sharp drop came after the bank released its March quarter (Q4FY25) earnings, which fell short of market expectations.

The fall marks one of the steepest single-day declines for the stock in recent months, driven by concerns over weakening asset quality and rising costs.

Main News

Kotak Mahindra Bank’s Q4FY25 performance missed key financial metrics. The numbers reflected growing stress in asset quality and operational challenges:

• Net profit fell 14% YoY, coming in at ₹3,552 crore.
• Interest income rose 10% YoY to ₹13,529.77 crore.
• Provisions for bad loans surged 245% YoY, reaching ₹909 crore.
• Gross NPA increased to 1.42% from 1.39% a year earlier.
• Net NPA improved to 0.31%, down from 0.34% last year.

The bank faced margin pressures due to higher provisioning and operating expenses. Loan growth slowed, and deposit growth stood at 11% YoY, trailing larger peers like ICICI Bank and HDFC Bank.

Company Details

Kotak Mahindra Bank, one of India’s prominent private lenders, experienced notable moderation in growth during Q4:

• Loan growth was in the low teens, showing signs of deceleration.
• Despite stable loan margins, rising costs and provisions impacted profitability.
• The Current Account-Savings Account (CASA) ratio showed seasonal improvement but wasn’t enough to offset operational headwinds.

The bank also focused on strengthening its provision coverage ratio, leading to increased credit costs during the quarter.

Summary of the Article

Kotak Mahindra Bank shares fell over 5% after the company reported a weak Q4FY25 performance. Key challenges included higher provisions, slower loan growth, and increased expenses, which led to a 14% drop in net profit.

While some financial parameters showed improvement — such as YoY growth in interest income and a slight dip in net NPAs — the overall sentiment remained cautious. The market reacted strongly, with the stock witnessing significant selling pressure.