Kotak Mahindra Bank Q3 Profit Rises 4% at ₹3,446 Cr

 Kotak Mahindra Bank on Saturday reported a 4% increase in standalone net profit at ₹3,446 crore for the third quarter ended December 2025, due to moderate growth in core income.

The Mumbai-based private sector lender had earned a net profit of ₹3,305 crore in the year-ago period.

Total income rose to ₹16,741 crore during the quarter under review, from ₹16,050 crore in the same period last year, Kotak Mahindra Bank said in a regulatory filing.

The bank's interest income also grew to ₹13,903 crore, as against ₹13,428 crore a year ago.

Net Interest Income (NII) in Q3FY26 increased to ₹7,565 crore from ₹7,196 crore in the year-ago period.

However, Net Interest Margin (NIM) declined to 4.54% in the reported quarter, from 4.9% in the third quarter of the previous financial year.

Speaking to the media during the post-result interaction, Kotak Mahindra Bank MD and CEO Ashok Vaswani said the credit card segment has seen a degrowth on an annual basis.

"We are reworking the entire business, launched new products. We have also seen a slowdown in the construction equipment industry because demand from the state government has gone down. Our growth is in line with industry levels," he said.

He also said that the personal loan portfolio acquired from Standard Chartered is doing better than expected.

No provision is required to be done on Priority Sector Lending in the agriculture sector after the RBI audit, he said.

As regards asset quality, gross non-performing asset (NPA) ratio moderated to 1.30% as on December 31, 2025, from 1.50% a year ago. Net NPA also eased to 0.31% from 0.41% at the end of December 2024.

However, provisions rose to ₹810 crore in the December quarter from ₹794 crore in the same quarter of the last fiscal year.

During the quarter, the bank's capital adequacy ratio moderated a bit to 22.63 per cent, as compared to 22.79% at the end of December 2024.

The bank's Group Chief Financial Officer (CFO) Devang Gheewalla said there would be a moderate increase in margins in the fourth quarter as well.

Gheewalla exuded confidence that the credit card portfolio should see an uptick from here onwards "Slippages on credit card, microfinance and personal loan are coming down. We are cautious on retail Commercial Vehicle where the slippages are relatively higher," he added.

On the consolidated basis, Kotak Mahindra Bank's profit rose by 5 per cent to ₹4,924 crore as compared to ₹4,701 per cent in Q3-FY2025.

Q3FY26 consolidated profit includes estimated incremental cost of ₹98 crore (post tax) pursuant to the new Labour Code.

Total Customer Assets Under Management as at December 31, 2025 grew to ₹7,87,950 crore from ₹6,85,134 crore a year ago.