Kotak Mahindra Bank: Shares Surge 4% on Strong Q1 Business Update

1 min read     Updated on 08 Jul 2025, 09:17 AM
scanxBy ScanX News Team
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Overview

Kotak Bank's Q1 business update shows 14.60% YoY growth in total deposits to ₹5.13 lakh crore and 14.00% YoY growth in total advances to ₹4.45 lakh crore. However, CASA deposits declined 2.20% QoQ, with the CASA ratio falling to 41.00%. The credit-to-deposit ratio increased to 86.70%. Despite mixed results, analysts maintain positive ratings, and the bank's shares surged 4.00% in response to the update.

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*this image is generated using AI for illustrative purposes only.

Kotak Bank , one of India's leading private sector banks, has released its business update for the first quarter, showcasing robust growth in both deposits and advances.

Deposit and Advance Growth

The bank reported impressive growth in its deposit and advance base:

  • Total deposits increased by 14.60% year-over-year (YoY) to ₹5.13 lakh crore.
  • Total advances grew by 14.00% YoY to ₹4.45 lakh crore.

This substantial growth in deposits and advances indicates strong customer confidence and the bank's ability to attract funds and expand its lending activities effectively.

CASA Deposits and Credit-to-Deposit Ratio

However, the bank faced some challenges in certain areas:

  • CASA (Current Account Savings Account) deposits declined by 2.20% quarter-over-quarter (QoQ).
  • The CASA ratio fell to 41.00%.
  • The credit-to-deposit ratio rose to 86.70%.

Analyst Outlook

Despite the mixed results, analysts maintain a positive outlook on Kotak Mahindra Bank:

  • Morgan Stanley reiterated its 'Overweight' rating.
  • Jefferies reaffirmed its 'Buy' rating.

Market Response

The market responded positively to the Q1 business update, with Kotak Mahindra Bank's shares surging 4.00%.

As the fiscal year progresses, stakeholders will be keen to see if Kotak Mahindra Bank can maintain this growth momentum and how it translates into the bank's overall financial performance and market position.

Historical Stock Returns for Kotak Bank

1 Day5 Days1 Month6 Months1 Year5 Years
+0.22%+2.78%+4.26%+24.53%+20.64%+62.94%
Kotak Bank
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Kotak Mahindra Bank: Q1 Advances Rise 14%, Deposits Up 13% Year-on-Year

1 min read     Updated on 07 Jul 2025, 07:56 PM
scanxBy ScanX News Team
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Overview

Kotak Mahindra Bank announced robust Q1 results with a 14% year-on-year increase in net advances to ₹4.45 lakh crore. Total deposits grew by 13% to ₹5.13 lakh crore. Average CASA deposits increased by 4.2% to ₹1.92 lakh crore, while end-of-period CASA deposits declined 2.2% quarter-on-quarter. The bank's balanced growth in advances and deposits indicates strong market performance and customer confidence.

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*this image is generated using AI for illustrative purposes only.

Kotak Bank , one of India's leading private sector banks, has reported robust growth in its key financial metrics for Q1, demonstrating the bank's continued expansion and strong performance in the market.

Q1 Performance

Kotak Mahindra Bank announced a 14% year-on-year increase in net advances, reaching ₹4.45 lakh crore in Q1. This growth indicates a strong demand for credit and the bank's commitment to supporting various sectors of the economy.

Total deposits grew by 13% year-on-year, amounting to ₹5.13 lakh crore. This increase in deposits suggests continued customer confidence in the bank.

CASA Deposits

The bank reported a mixed performance in its Current Account Savings Account (CASA) deposits. Average CASA deposits grew by 4.2% year-on-year to ₹1.92 lakh crore. However, end-of-period CASA deposits declined by 2.2% quarter-on-quarter.

Key Financial Metrics

To provide a clearer picture of Kotak Mahindra Bank's Q1 performance, here's a summary of the reported financial metrics:

Metric Value Year-on-Year Growth Quarter-on-Quarter Change
Net Advances ₹4.45 lakh crore 14.00% Not specified
Total Deposits ₹5.13 lakh crore 13.00% Not specified
Average CASA Deposits ₹1.92 lakh crore 4.20% Not specified
End-of-period CASA Deposits Not specified Not specified -2.20%

The strong growth in both advances and deposits indicates that Kotak Mahindra Bank is maintaining a healthy balance between its funding sources and lending activities. This balanced approach is crucial for maintaining liquidity and ensuring sustainable growth in the banking sector.

As the Indian economy continues to evolve, Kotak Mahindra Bank's performance in key areas such as deposits and advances positions it well to capitalize on emerging opportunities and navigate potential challenges in the financial landscape.

Historical Stock Returns for Kotak Bank

1 Day5 Days1 Month6 Months1 Year5 Years
+0.22%+2.78%+4.26%+24.53%+20.64%+62.94%
Kotak Bank
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like18
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