Kotak Mahindra Bank's Evaluation Adjusted Amid Mixed Financial Performance Indicators

Oct 28 2025 08:03 AM IST
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Kotak Mahindra Bank has experienced a recent evaluation adjustment, highlighting a mix of strong financial metrics and emerging challenges. Key indicators include a solid Dividend Per Share of Rs 2.50 and a low Gross NPA ratio of 1.39%, despite a decline in Profit After Tax over the past six months.
Kotak Mahindra Bank has recently undergone an adjustment in its evaluation, reflecting notable shifts in its financial metrics and market position. The bank's financial performance for the quarter ending September 2025 has been characterized as flat, with the score reflecting a significant change from previous assessments.

Key indicators highlight the bank's strengths, including a robust Dividend Per Share (DPS) of Rs 2.50 and a Gross Non-Performing Assets (NPA) ratio at a low 1.39%. The Net Interest Income (NII) reached a high of Rs 7,310.74 crore, while the Profit Before Depreciation, Interest, and Tax (PBDIT) stood at Rs 2,679.09 crore. Additionally, the Credit-Deposit Ratio was reported at 87.50%, showcasing effective asset management.

However, challenges remain, as the Profit After Tax (PAT) for the latest six months has shown a decline, and the Earnings Per Share (EPS) is at Rs 16.36. The valuation metrics indicate that the stock is currently categorized as expensive, with a Price to Earnings (PE) ratio of 31.91 and a Price to Book Value of 3.41.

Overall, Kotak Mahindra Bank's recent evaluation adjustment reflects a complex interplay of strong operational metrics alongside some areas of concern.

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