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Kotak Mahindra Bank Reports 26 Percent Rise in Q2 Net Profit
Kotak Mahindra Bank reported a 26 percent year on year increase in consolidated net profit to Rs 5645 crore for Q2 FY27, supported by strong growth in advances and deposits. Asset quality improved during the quarter, although net interest margin moderated to 4.31 percent due to higher liquidity following strong FCNR B deposit inflows.
By Finblage Editorial Desk
4:55 pm
25 October 2026
Kotak Mahindra Bank reported a 26 percent year on year increase in consolidated net profit to Rs 5645 crore for the quarter ended September 30 2026, compared with Rs 4468 crore in the corresponding quarter of the previous year. The lender had reported a consolidated net profit of Rs 5480 crore in the June quarter of FY27.
Total income stood at Rs 29426.88 crore during the reported quarter. The bank continued to record strong balance sheet growth, with net advances increasing 25 percent year on year to Rs 5.77 lakh crore as of September 30 2026, compared with Rs 4.62 lakh crore a year earlier.
Average total deposits grew 19 percent year on year to Rs 6.06 lakh crore in Q2 FY27 from Rs 5.10 lakh crore in the year ago period. The bank mobilised FCNR B deposits aggregating to Rs 55344 crore during the quarter, contributing significantly to the increase in its term deposit base.
Net interest margin moderated to 4.31 percent in Q2 FY27 from 4.54 percent in Q2 FY26 and 4.53 percent in Q1 FY27. Kotak Mahindra Bank attributed the sequential moderation largely to the flush in liquidity resulting from the FCNR B deposit inflows.
The increase in term deposits also affected the banks CASA ratio, which declined to 38.2 percent at the end of September 2026 from 42.5 percent in the corresponding quarter of the previous year.
Capitalisation remained strong during the quarter. The banks Basel III capital adequacy ratio stood at 21.9 percent as of September 30 2026, while the Common Equity Tier 1 ratio was 21.4 percent. Standalone return on assets for Q2 FY27 on an annualised basis stood at 1.92 percent.
Asset quality improved compared with the year ago period. The gross non performing asset ratio declined to 1.04 percent in Q2 FY27 from 1.39 percent in Q2 FY26, while the net non performing asset ratio improved to 0.24 percent from 0.32 percent.
The combination of strong loan growth, higher deposits, robust capitalisation and improved asset quality supported the banks overall performance during the quarter, although the moderation in net interest margin remains a key factor to monitor in the coming quarters.
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