At a Glance
Kotak Mahindra Bank used to be the suave overachiever of Indian banking. But post-Uday Kotak’s partial exit, it’s been more Mr. Spreadsheet than Mr. Swag. Despite growing profits to ₹22,126 Cr in FY25 and maintaining elite NPAs, the stock has underperformed peers like ICICI and Axis. Is the magic fading?
🧠 TL;DR
- 🏦 Full-spectrum financial services: retail, broking, AMC, insurance, investment banking
- 💸 FY25 PAT: ₹22,126 Cr | EPS: ₹111 | ROE: 13.4%
- 🐌 TTM PAT growth: Just 6% — while ICICI & HDFC sprinted
- 🧾 Contingent Liabilities? ₹7.77 lakh crore 😮
- 📉 Stock CAGR: 10% (5Y), 9% (3Y) – laggard alert
- 🎯 Fair Value Range: ₹1,550 – ₹1,800
🧾 1. Financials Recap: Consistent… and Boring?
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 32,820 | 33,741 | 42,151 | 56,237 | 65,669 |
| Net Profit (₹ Cr) | 9,990 | 12,089 | 14,925 | 18,213 | 22,126 |
| EPS (₹) | 50.4 | 60.9 | 75.1 | 91.6 | 111.3 |
| ROE (%) | 13% | 13% | 14% | 15% | 13% |
| Gross NPA (%) | 3.3% → 1.45% (Excellent trend) |
✅ Good:
- Healthy loan book, strong underwriting
- Net NPA: just0.36%
- CASA Ratio among best in class
😒 Meh:
- ROE below ICICI’s 18%
- Over-reliant on “Other Income” (₹41,211 Cr in FY25!)
- Growth is slow despite balance sheet strength
📊 2. CAGR Game (5-Year)
| Metric | CAGR |
|---|---|
| Revenue | 14% |
| PAT | 18% |
| EPS | 17% |
| Stock Price | Just 10% |
Even Uday Kotak’s charisma couldn’t juice those stock returns. Investors are asking:Why buy Kotak when ICICI is compounding faster?
🔍 3. Segment Insights
Kotak isn’t just a bank. It’s an empire.
| Segment | Snapshot |
|---|---|
| 🏦 Retail Banking | Core engine, slow-paced deposit growth |
| 🏢 Corporate & Treasury | Stable, but less aggressive than Axis/ICICI |
| 📈 Broking (Kotak Sec) | 11.8% market share |
| 💰 Asset Management | ₹3.5 lakh Cr AUM, 6.5% market share |
| 🛡️ Insurance (Life + General) | Modest size but growing slowly |
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