Mumbai, October 24: Kotak Mahindra Bank reported a 26 per cent year-on-year rise in consolidated net profit to Rs 5,645 crore for the September quarter of FY27, supported by higher core income and lower provisions.
On a standalone basis, the private sector lender’s net profit increased 29 per cent to Rs 4,212 crore.
Net Interest Income Grows 16%
The bank’s net interest income (NII) rose 16 per cent to Rs 8,459 crore, driven by a 25 per cent increase in net advances.
However, its net interest margin (NIM) narrowed by 23 basis points, reflecting the impact of foreign currency deposit mobilisation.
FCNR(B) Deposits Impact Margins
Kotak Mahindra Bank mobilised Rs 55,344 crore through FCNR(B) deposits under the Reserve Bank of India’s concessional swap facility.
The bank also disbursed Rs 16,110 crore in loans under the scheme, which permitted leveraged borrowing against deposits.
Excluding the scheme’s impact, loan growth stood at 19 per cent, while deposit growth was 13 per cent.
CASA Ratio Declines
The bank’s Current Account and Savings Account (CASA) ratio declined to 38.2 per cent in September 2026 from 42.3 per cent a year earlier.
The lender attributed the decline partly to the substantial mobilisation of FCNR(B) deposits.
Asset Quality Improves
Kotak Mahindra Bank reported lower fresh loan slippages of Rs 1,230 crore during the quarter, compared with Rs 1,629 crore in the corresponding period last year.
Its gross non-performing assets (GNPA) ratio improved to 1.04 per cent from 1.39 per cent a year ago, indicating better asset quality.
Capital Position Remains Strong
The bank maintained a capital adequacy ratio of 21.9 per cent as of September 30, 2026.
Its Common Equity Tier 1 (CET1) ratio stood at 21.4 per cent, reflecting a substantial capital buffer.
Overall, the quarterly performance showed stronger profitability, improved asset quality and healthy lending growth, despite pressure on margins.
