Kotak Bank Q4 preview: Net Profit May Dip 16% YoY Amid Elevated Provisions; NII Likely to Grow Up to 9%

Kotak Bank Q4 preview: Profit Set to Decline Up to 16% YoY as Provisions Surge; NII May See Up to 9% Growth

Kotak Mahindra Bank, India’s 0.33-biggest private lender by market capitalisation, is ready to announce its Q4FY25 outcomes on Saturday, May three. Analysts anticipate a sharp year-over-year dip in the financial institution’s internet profit because of a considerable upward thrust in provisioning expenses, even though middle revenue growth remains intact.

As in keeping with projections from leading brokerages, inclusive of Nuvama Institutional Equities, Elara Capital, IIFL Capital, and JM Financial, the bank’s profit after tax (PAT) is predicted to fall between 11% and 16% in comparison to the same period last 12 months. Forecasts advocate that Q4 PAT may want to range between ₹3,457 crore and ₹3,seven-hundred crore. While Nuvama holds the most optimistic view on profitability, Elara sees the steepest decline. Kotak Bank Q4 preview

Despite the predicted pressure on the lowest line, Kotak Bank’s Net Interest Income (NII) is projected to upward thrust in the range of 6% to nine% yr-on-year, coming in between ₹7,306 crore and ₹7,500 crore. This growth is basically attributed to a healthy growth inside the financial institution’s loan ebook. Elara stays the maximum bullish on sales boom, even as JM Financial forecasts extra mild gains.

Kotak Bank Q4 preview

Nuvama expects Q4 PAT at ₹3,700 crore (down 11% YoY) and NII at ₹7,430 crore (up 8% YoY). It foresees net interest margins (NIMs) at four.89%, reflecting some contraction, whilst the pre-provision operating profit (PPoP) could increase by 5% to ₹5,740 crore.

Elara predicts the lowest PAT at ₹3,457 crore (down 16% YoY), although it sees NII growth of 9% at ₹7,500 crore. The brokerage also estimates a marginal NIM compression to 4.4% and a small decline in PPoP at ₹5,396 crore. Kotak Bank Q4 preview

IIFL Capital estimates Q4 PAT at ₹3,620 crore (down 12% YoY) and NII at ₹7,350 crore (up 6% YoY). The brokerage tasks a mild 3% % upward thrust in PPoP to ₹5,610 crore. It highlights a sharp spike in provisions, predicted to jump over two hundred YoY to ₹800 crore.

JM Financial expects internet income at ₹3,650 crore and NII at ₹7,306 crore. It sees PPoP growing 4% YoY to ₹5,668 crore, driven employing resilient running performance no matter margin pressures. Credit fees are predicted to stay at zero.8%. Kotak Bank Q4 preview

Across the board, analysts are projecting a strong mortgage boom for Kotak Bank, with advances predicted to rise 15–16% YoY and deposits growing by nine–14%. However, growing slippages and better credit fees—especially in unsecured and microfinance segments—are weighing on profitability. Kotak Bank Q4 preview

As the financial institution navigates a excessive-fee surroundings and aggressive pressure within the lending area, buyers will intently tune management remark on asset nice tendencies, capital allocation, and digital initiatives in the imminent income call.

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