Kotak Mahindra Bank Q3 Profit Rises 5% to ₹4,924 Crore

Kotak Mahindra Bank on Saturday reported a 5 per cent year-on-year (YoY) rise in its consolidated net profit to ₹4,924 crore for Q3FY26 (October-December), while sequentially, profits jumped 10 per cent. On a standalone basis, net profit rose 4 per cent YoY to ₹3,446 crore, reflecting modest growth in net interest income and other income amid slightly higher provisions.

The bank’s net interest income (NII) increased 5 per cent YoY and 3 per cent sequentially to ₹7,565 crore, supported by a 15 per cent YoY growth in gross advances to ₹4.99 trillion. Other income also rose 8 per cent YoY and 10 per cent sequentially to ₹2,838 crore, highlighting diversified revenue streams. Net interest margin (NIM) remained stable sequentially at 4.54 per cent but was down 39 basis points YoY.

Asset quality showed improvement with gross non-performing assets (NPAs) declining 9 basis points sequentially to 1.30 per cent, while net NPAs stood at 0.31 per cent. Fresh slippages moderated slightly to ₹1,605 crore, compared with ₹1,629 crore in the previous quarter, reflecting better credit management. Provisions for the quarter were marginally higher at ₹810 crore, up 2 per cent YoY but down 15 per cent sequentially.

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The bank’s advances grew 16 per cent YoY to ₹4.80 trillion, while customer assets—including advances and credit substitutes—rose 15 per cent YoY to ₹5.29 trillion. Consumer banking portfolios, particularly home loans and loans against property, recorded 18 per cent YoY growth, while the credit card segment saw a 13 per cent YoY decline. Commercial and wholesale banking portfolios expanded 7 per cent and 17 per cent YoY, respectively.

Deposits remained a strong driver, with total period-end deposits reaching ₹5.42 trillion, up 15 per cent YoY. Average total deposits also grew 15 per cent YoY, led by gains in current, savings, and term deposits. The bank’s CASA ratio stood at 41.3 per cent, while the credit-to-deposit ratio was 88.6 per cent, reflecting a balanced mix of liquidity and lending growth.

Separately, Kotak Mahindra Bank said its board approved raising ₹15,000 crore through non-convertible debentures (NCDs) on a private placement basis in FY27, aimed at supporting further growth and strategic initiatives. The announcement reinforces the bank’s strong capital position amid steady performance across business segments.

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