Kotak Mahindra Bank reported a strong financial performance for the first quarter of FY27, with its standalone net profit rising 25.6% year-on-year to ₹4,123 crore for the quarter ended June 30, 2026, driven by healthy growth in net interest income, improved asset quality, higher fee income and lower credit costs.
The private sector lender posted a net profit of ₹4,123 crore during the quarter, compared with ₹3,281.7 crore in the corresponding period of the previous financial year, reflecting continued momentum across its core banking operations.
The bank’s Net Interest Income (NII), which represents the difference between interest earned and interest paid, increased 9% year-on-year to ₹7,927.4 crore, up from ₹7,259.3 crore in the June quarter of FY26. The growth was supported by healthy expansion in the loan book and stable lending activity across business segments.
Kotak Mahindra Bank reported a Net Interest Margin (NIM) of 4.53% during the quarter. Although marginally lower than the 4.65% recorded in the corresponding quarter last year, the margin remained among the strongest in the Indian banking sector, reflecting the bank’s efficient balance sheet management.
Asset quality continued to improve during the reporting period. The bank’s Gross Non-Performing Asset (GNPA) ratio declined to 1.18% of gross advances, compared to 1.48% a year earlier, marking an improvement of 30 basis points. Similarly, the Net NPA ratio fell to 0.27%, down from 0.34% in the corresponding quarter of FY26, indicating sustained improvement in credit quality and recoveries.
As of June 30, 2026, the bank’s net advances stood at ₹5.12 lakh crore, while net deposits increased to ₹5.72 lakh crore. This resulted in a Credit-Deposit (CD) ratio of 89.4%, slightly higher than approximately 87% recorded during the same period last year, reflecting stronger credit growth alongside a healthy deposit base.
The bank attributed its improved profitability to multiple factors, including sustained growth in net interest income, higher fee-based income, continued focus on cost optimisation, and a significant improvement in asset quality, which contributed to lower provisioning requirements and reduced credit costs.
The latest quarterly results underscore Kotak Mahindra Bank’s disciplined approach to lending and risk management, with improving asset quality strengthening its overall financial position despite a competitive banking environment. Healthy loan growth, stable margins and prudent provisioning continue to support the bank’s long-term growth strategy.
With India’s banking sector benefiting from resilient credit demand and improving economic activity, Kotak Mahindra Bank remains well-positioned to sustain its growth trajectory through a diversified loan portfolio, strong capital position and continued emphasis on operational efficiency.
Disclaimer: This report has been editorially prepared using publicly available information and official company disclosures. Readers are advised to refer to Kotak Mahindra Bank’s official financial statements and regulatory filings for complete details.
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