Mumbai, 24th October 2026: Kotak Mahindra Bank Limited has reported a significant rise in its standalone profit after tax (PAT) for the second quarter of the financial year 2026-2027, reaching ₹4,212 crore. This marks a 29% year-on-year increase from ₹3,253 crore in the corresponding quarter of the previous fiscal year, and a 2% rise from ₹4,123 crore in the preceding quarter. The bank’s consolidated PAT also saw a notable increase, standing at ₹5,645 crore, which is a 26% year-on-year growth and a 3% quarter-on-quarter rise.
The bank’s net interest income (NII) for Q2FY27 rose to ₹8,459 crore, reflecting a 16% increase from ₹7,311 crore in Q2FY26 and a 7% increase from ₹7,928 crore in Q1FY27. However, the net interest margin (NIM) experienced a slight decline, standing at 4.31% compared to 4.54% in Q2FY26, primarily due to the mobilisation of FCNR(B) deposits during the quarter. The cost of funds decreased to 4.52% from 4.70% in the same period last year.
Kotak Mahindra Bank’s operating expenses increased by 14% year-on-year to ₹5,271 crore, while the operating profit rose by 21% to ₹6,382 crore. The bank’s provisions for the quarter decreased by 15% year-on-year to ₹803 crore, with the credit cost reducing to 0.35% from 0.79% in the previous year. The bank’s asset quality improved, with gross non-performing assets (GNPA) at 1.04% and net non-performing assets (NNPA) at 0.24% as of September 30, 2026.
The bank’s net advances grew by 25% year-on-year to ₹577,295 crore, while customer assets increased by 23% to ₹626,801 crore. Total deposits rose by 23% to ₹651,491 crore, although the CASA ratio declined to 38.2% from 42.3% due to FCNR(B) deposit inflows. Excluding these deposits, the CASA ratio stood at 41.8%.
Analysts note that Kotak Mahindra Bank’s robust performance in Q2FY27 is indicative of its strong operational efficiency and strategic deposit mobilisation. The bank’s capital adequacy ratio, as per Basel III, stood at 21.9%, reflecting a solid capital position. The bank’s continued focus on asset quality and cost management is expected to support its growth trajectory in the coming quarters.
