Kotak Mahindra Bank Ltd. has reported a consolidated profit after tax (PAT) of ₹4,468 crore for the quarter ended September 30, 2025 (Q2FY26), compared to ₹5,044 crore a year ago. The standalone PAT stood at ₹3,253 crore, showing the bank’s resilience amid tightening liquidity and industry-wide margin pressure.
Despite a modest dip in profit, the bank’s business growth remains strong, led by a healthy rise in advances and customer deposits.
Deposit and loan growth on solid footing
Net advances jumped 16% YoY to ₹4.62 lakh crore, while average total deposits rose 14% YoY to ₹5.10 lakh crore.
The CASA ratio stood at 42.3%, maintaining Kotak’s leadership in low-cost deposits, while term deposits surged 20% YoY to ₹3.11 lakh crore.
💬 Analysts believe this steady deposit mix positions the bank well to defend its margins in a rising rate environment.
Asset quality shines bright
Kotak Mahindra Bank continued to showcase one of the best asset quality metrics in the industry:
- Gross NPA: 1.39% (vs. 1.49% YoY)
- Net NPA: 0.32% (vs. 0.43% YoY)
- Provision coverage: 77%
The improvement reflects the bank’s conservative lending strategy and disciplined risk management.
Margins, income, and profitability
- Net Interest Income (NII): ₹7,311 crore (up 4% YoY)
- Net Interest Margin (NIM): 4.54%
- Operating Profit: ₹5,268 crore (up 3% YoY)
- Credit Cost: 0.79%, improving from 0.93% in Q1FY26
Kotak also saw fee and service income rise 4% YoY to ₹2,415 crore, driven by its diversified financial ecosystem across banking, securities, and asset management.
Subsidiaries stay profitable
Kotak’s diversified businesses continued to contribute meaningfully:
- Kotak Securities: ₹345 crore
- Kotak Asset Management: ₹258 crore
- Kotak Mahindra Prime: ₹246 crore
- Kotak Mahindra Investments: ₹120 crore
- Kotak Alternate Asset Managers: ₹104 crore
- Kotak Mahindra Life Insurance: ₹49 crore
While profits from some subsidiaries dipped YoY, the bank’s broader ecosystem remains robust, backed by record AUM growth and diversified income streams.
Massive balance sheet and capital strength
Kotak Mahindra Bank’s consolidated customer assets grew 13% YoY to ₹5.76 lakh crore, while AUM surged 12% YoY to ₹7.6 lakh crore.
Book value per share rose 14% YoY to ₹844.
Capital Adequacy Ratio stood at 22.1%, and CET 1 ratio at 20.9%, reflecting one of the strongest capital buffers in the private banking space.
Leadership and future outlook
The management continues to emphasize technology-driven growth and deeper retail penetration. With 2,198 branches and 2,758 ATMs (including cash recyclers), the bank’s network now serves over 5.2 crore customers.
Experts expect Kotak’s next growth wave to come from digital lending, SME financing, and wealth management, leveraging India’s expanding financial inclusion story.
The bottom line
Kotak Mahindra Bank’s Q2FY26 performance underscores stable profitability, solid asset quality, and ample liquidity, even as competitive pressure weighs on margins.
For investors, the results confirm Kotak’s standing as one of India’s most consistent private sector banks — blending traditional prudence with a growing digital edge.
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