Kotak Mahindra Bank Q2 results: Net profit jumps 29.5%, NII rises nearly 16%
Kotak Mahindra Bank reported a 29.5% year-on-year jump in net profit to ₹4,212 crore in the September quarter of FY27, up from ₹3,253.3 crore a year earlier, according to an exchange filing.
Net interest income, the difference between interest earned and interest paid, rose 15.7% to ₹8,459 crore from ₹7,311 crore. Operating profit increased 21.1% year-on-year to ₹6,382.2 crore, compared with ₹5,268.3 crore in the year-ago quarter.
Net interest margin (NIM), a key measure of lending profitability, declined to 4.31% in the September quarter from 4.54% a year earlier and 4.53% in the June quarter.
Asset quality improves; provisions decline year-on-year
Kotak Mahindra Bank's asset quality improved sequentially during the quarter. Gross non-performing assets (GNPA) for the September quarter declined to 1.04% from 1.18% in the June quarter. Net non-performing assets (NNPA) fell to 0.24% from 0.27% over the same period.
Provisions stood at ₹803.6 crore, down 15.2% from ₹947.4 crore in the year-ago quarter. However, provisions increased 20.3% quarter-on-quarter from ₹668 crore in the June quarter, as per exchange filing.
Net advances rise 25%; FCNR(B) deposits boost funding base
Net advances increased 25% year-on-year to ₹5,77,295 crore as of September 30, 2026, from ₹4,62,688 crore a year earlier. Excluding loans extended against FCNR(B) deposits and the loan portfolio acquired from Kotak Mahindra Investments Ltd (KMIL), net advances grew 19% year-on-year.
The bank mobilised FCNR(B) deposits worth ₹55,344 crore during the September quarter through its international branches.
Kotak Mahindra Bank's current account and savings account (CASA) ratio stood at 38.2% as of September 30, 2026, compared with 42.3% a year earlier. The bank attributed the decline to an increase in the term deposit base following FCNR(B) deposit inflows. Excluding FCNR(B) deposits, the CASA ratio stood at 41.8%, according to exchange filing.
Shares of Kotak Mahindra Bank ended 1.5% lower at ₹430.50 on the NSE on Friday, October 23. The stock has gained 4.2% over the past month but remains down 2.9% so far this year.
