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Kotak Mahindra Bank Q2 Results: Profit Dips to Rs 4,468 Crore Amid Growth

Kotak Mahindra Bank has announced its second quarter financial results for FY26. The bank reported a consolidated profit after tax of Rs 4,468 crore despite a slight decline from last year. Customer assets showed strong growth with a 13% year-on-year increase to over Rs 5.76 lakh crore. The bank also demonstrated improved asset quality with reduced NPAs and maintained robust capital adequacy ratios.

Key Points: Kotak Mahindra Bank Q2FY26 Profit Rs 4468 Crore Loan Growth

  • Consolidated PAT at Rs 4,468 crore with 13% growth in customer assets
  • Net advances increased 16% to Rs 4,62,688 crore on standalone basis
  • Gross NPA improved to 1.39% from 1.49% year-on-year
  • Strong capital adequacy ratio at 22.8% with CET-1 ratio of 21.8%
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Kotak Mahindra Bank Q2FY26 consolidated profit at Rs 4,468 crore; Loan book, deposits show steady growth

Kotak Mahindra Bank reports Q2FY26 consolidated PAT of Rs 4,468 crore with 13% customer assets growth and improved asset quality metrics.

"The consolidated customer assets, including advances and credit substitutes, rose 13 per cent year-on-year to Rs 5,76,339 crore - Kotak Mahindra Bank Press Release"

New Delhi, October 26

Kotak Mahindra Bank on Saturday reported a consolidated profit after tax (PAT) of Rs 4,468 crore for the quarter ended September 30, 2025 (Q2FY26), compared to Rs 5,044 crore in the same quarter last year. On a standalone basis, the bank's PAT stood at Rs 3,253 crore for Q2FY26, slightly lower than Rs 3,344 crore in the previous year's corresponding quarter. The figures were shared by the bank in a press release issued after its Board meeting held in Mumbai on Saturday.

According to the Kotak Mahindra Bank press release, the consolidated customer assets, including advances and credit substitutes, rose 13 per cent year-on-year to Rs 5,76,339 crore as of September 30, 2025. The bank's total assets under management increased 12 per cent to Rs 7,60,598 crore from Rs 6,80,838 crore a year ago. Domestic mutual fund equity AUM also rose 14 per cent to Rs 3,62,694 crore.

The consolidated net worth of the bank stood at Rs 1,67,935 crore, with the book value per share improving to Rs 844, up 14 per cent from Rs 740 last year. Return on Assets (ROA) for the quarter stood at 1.97 per cent, while Return on Equity (ROE) was 10.65 per cent. The bank's consolidated capital adequacy ratio remained strong at 22.8 per cent, with a Common Equity Tier-I ratio of 21.8 per cent, including unaudited profits.

On the standalone front, Kotak Mahindra Bank's lending and deposit base continued to grow steadily. Net advances rose 16 per cent year-on-year to Rs 4,62,688 crore, while average total deposits climbed 14 per cent to Rs 5,10,538 crore. The bank reported a CASA ratio of 42.3 per cent as of September 30, 2025.

The net interest income (NII) for the quarter grew modestly by 4 per cent to Rs 7,311 crore, compared to Rs 7,020 crore a year earlier. Net Interest Margin (NIM) was reported at 4.54 per cent. The bank's cost of funds stood at 4.70 per cent during the quarter. Fee and service income rose to Rs 2,415 crore, while operating expenses increased marginally to Rs 4,632 crore.

The asset quality indicators reflected improvement. Gross non-performing assets (GNPA) declined to 1.39 per cent from 1.49 per cent a year earlier, and net NPA (NNPA) stood at 0.32 per cent against 0.43 per cent previously. The provision coverage ratio improved to 77 per cent. The bank's credit cost (annualized) came down to 0.79 per cent from 0.93 per cent in the previous quarter.

Kotak Mahindra Bank's standalone return on assets was 1.88 per cent, while return on equity stood at 10.38 per cent for the quarter.

- ANI

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Reader Comments

R
Rohit P
Profit decline from ₹5,044 crore to ₹4,468 crore is concerning though. Yes, loan book is growing but margins seem under pressure. Hope they address this in upcoming quarters. Still, better asset quality is a positive sign.
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Arjun K
The CASA ratio of 42.3% is excellent! Shows strong retail banking fundamentals. As someone who banks with Kotak, their digital services are top-notch. Good to see Indian private banks performing well despite global headwinds. 🇮🇳
S
Sarah B
Impressive that NPAs have reduced significantly - from 1.49% to 1.39% gross and 0.43% to 0.32% net. This shows better risk management. The provision coverage ratio improvement to 77% is also reassuring for depositors like me.
V
Vikram M
The 14% growth in domestic mutual fund AUM to ₹3.62 lakh crore is remarkable! Kotak's wealth management division is clearly doing well. As an investor in their mutual funds, this gives me confidence in their asset management capabilities.
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Michael C
While the numbers look decent overall, the modest 4% growth in NII is a bit disappointing. With rising competition from other private banks and fintechs, Kotak needs to innovate more in their core banking operations to maintain leadership position.

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