Kotak Mahindra Bank reported a 26 percent year-on-year increase in consolidated net profit to ₹5,645 crore for the quarter ended September 30, 2026, beating market expectations on strong loan demand and lower provisioning for bad loans while absorbing liquidity impacts from foreign currency deposit mobilization.
The Mumbai-based lender posted a standalone net profit of ₹4,211 crore for the three months ended September 30, 2026, up from ₹3,253 crore during the same period in the previous year. Analysts surveyed by LSEG had anticipated a standalone profit of ₹4,104 crore. Consolidated net profit reached ₹5,645 crore, representing a 26 percent jump from ₹4,468 crore in the corresponding quarter of FY26, according to exchange filings submitted on October 24, 2026.
Announcing our financial results for Q2FY27. Watch the key highlights to know more.This video is for information purposes only. The complete presentation can be accessed at https://t.co/cggjRGLXd7#KotakMahindraBank #QuarterResults #Q2FY27Results pic.twitter.com/0Qano4Rh5Y
Total income for the quarter rose 18 percent year on year to ₹29,426.88 crore. Net interest income (NII), which measures the difference between interest earned and paid, climbed 16 percent to ₹8,459 crore, supported by a 25 percent rise in domestic net advances to ₹5,77,295 crore.
Foreign Currency Deposits Press Margins
Core profitability faced headwinds from liquidity adjustments linked to foreign currency non-resident bank deposits. During the quarter, the bank mobilized ₹55,344 crore of FCNR(B) deposits under a Reserve Bank of India concessional swap facility introduced in June to attract foreign currency.
Kotak Mahindra Bank Q2 results FY27: Net profit jumps 29% to Rs 4,212 crore YoY; gross NPA drops to 1.04%https://t.co/UWryUBkxwY
The influx of liquidity compressed the net interest margin (NIM) to 4.31 percent, down from 4.54 percent in the same quarter last year and 4.53 percent in the June quarter. The lender also disbursed loans tied to the FCNR(B) scheme, permitting borrowing against the deposits.
The current account and savings account (CASA) ratio dropped to 38.2 percent as of September 30, 2026, compared with 42.3 percent a year earlier, as the term deposit base swelled.
#EarningsWithMC | Kotak Mahindra Bank's Q2 net profit jumps 27% to Rs 5,634 croreThe company had reported a net profit of Rs 5,487.06 crore in the June quarter of the current financial year.The private lender also reported a total income of Rs 29,426.88 crore in the reported…
Loan Provisions Fall As Asset Quality Rises
Credit risk metrics showed improvement as provisions for potential bad loans declined. Funds set aside for loan losses dropped 15 percent year on year to ₹803 crore.
Asset quality strengthened across both gross and net measures. The gross non-performing asset (GNPA) ratio improved to 1.04 percent at the end of September, compared with 1.39 percent in the year-ago period and 1.18 percent three months prior. The net non-performing asset (NNPA) ratio stood at 0.24 percent, down from 0.32 percent.
Slippages decreased for the quarter, compared to the corresponding period of the previous fiscal year.
Capital Buffers Hold Above Regulatory Minimums
The lender maintained capital buffers above regulatory minimums. Under Basel III norms, the consolidated capital adequacy ratio stood at 22.4 percent, with a Common Equity Tier 1 (CET1) ratio of 22.1 percent as of September 30, 2026. On a standalone basis, the capital adequacy ratio was 21.9 percent, including a CET1 ratio of 21.4 percent.
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Consolidated customer assets, encompassing advances and credit substitutes, grew 8 percent year on year to ₹8,14,118 crore. Average total deposits reached ₹6.06 lakh crore, marking a 19 percent annual increase.
| Financial Metric | Q2 FY27 | Q2 FY26 | YoY Change |
|---|---|---|---|
| Consolidated Net Profit | ₹5,645 crore | ₹4,468 crore | +26% |
| Standalone Net Profit | ₹4,212 crore | ₹3,253 crore | +29% |
| Net Interest Income | ₹8,459 crore | ₹7,311 crore | +16% |
| Net Interest Margin (NIM) | 4.31% | 4.54% | -0.23% |
| Gross NPA Ratio | 1.04% | 1.39% | Improved |
Board Approves Financial Results
The bank’s Board of Directors approved the unaudited standalone and consolidated financial results during a meeting on October 24, 2026, following a recommendation from the Audit Committee. Joint statutory auditors Deloitte Haskins & Sells and M M Nissim & Co LLP issued a limited review report without material modifications.
Prior to the results announcement, shares of Kotak Mahindra Bank closed 1.49 percent lower at ₹430.50 apiece on the NSE on Friday, October 23, bringing the bank’s market capitalization to ₹4,28,256.29 crore.