Kotak Mahindra Bank reported a 26% YoY rise in standalone net profit to ₹4,123 crore for the June quarter.
Net interest income increased 9%, while deposits and advances grew in double digits.
Asset quality improved from a year ago, though NPA ratios edged up sequentially and net interest margin narrowed.
Kotak Mahindra Bank Q1 Results: Profit Up 26% YoY to ₹4,123 Cr; Asset Quality Improves
The private lender reported double-digit growth in profit, deposits and advances during the June quarter, while net interest margin declined sequentially
Summary
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Kotak Mahindra Bank reported a strong start to FY27, with standalone net profit rising 26% year-on-year (YoY) to ₹4,123 crore in the April–June quarter, supported by steady growth in lending and deposits despite some pressure on margins.
The private lender's net interest income (NII) rose 9% YoY to ₹7,928 crore, compared with ₹7,259 crore in the year-ago quarter. The bank's net worth also increased more than 14% YoY to ₹1.4 lakh crore.
The results reflect steady business growth, supported by higher lending and deposit mobilisation, although pressure on margins continued during the quarter.
Asset Quality Improves
Kotak Mahindra Bank reported an improvement in asset quality compared with a year ago, even as bad loan ratios increased slightly on a sequential basis.
Net non-performing assets (NNPA) declined 11% YoY to ₹1,358 crore, while gross NPAs fell 8% to ₹6,122 crore during the quarter. The gross NPA ratio stood at 1.18%, while the net NPA ratio came in at 0.27%. However, net NPAs were 7.5% higher than the March quarter.
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Fresh slippages declined 27% YoY to ₹1,321 crore, while provisions and contingencies dropped 45% to ₹668 crore, indicating lower provisioning requirements during the quarter.
Deposits, Advances Grow; Margins Ease
Business growth remained healthy during the June quarter, with total deposits rising 14% YoY to ₹5.59 lakh crore and net advances increasing 15% to ₹5.12 lakh crore.
The bank's period-end deposits stood at ₹5.73 lakh crore, up 12% from a year ago, while the credit-to-deposit ratio improved to 89.4%, compared with 86.7% a year earlier. Its CASA ratio stood at 40.3% as of June 30.
However, net interest margin (NIM) narrowed to 4.53% during the quarter from 4.65% a year ago and 4.67% in the March quarter, reflecting pressure on lending margins.
Kotak Mahindra Bank shares ended at ₹389.95 on Friday. The stock has gained more than 3% over the past week but remains down about 12% so far in 2026. The lender currently has a market capitalisation of nearly ₹3.89 lakh crore.
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