Kotak Mahindra Bank Q1 results: Net profit jumps 26% to Rs 4,122 crore; provisions up QoQ; key highlights

Kotak Mahindra Bank Ltd (KMB) on Saturday reported a 25.63 per cent year-on-year (YoY) rise in standalone net profit at Rs 4,122.96 crore for the June quarter, compared with Rs 3,281.68 crore in the corresponding quarter last year. This was higher than analyst projections of 19-20 per cent rise in bottom line for the quarter.

Net Interest Income (NII) for the private lender rose 9 per cent YoY and 1 per cent QoQ to Rs 7,928 crore in the June quarter from Rs 7,259 crore a year earlier and Rs 7,876 crore in the March quarter. 

Net Interest Margin (NIM) moderated to 4.53 per cent from 4.67 per cent QoQ and 4.65 per cent YoY, KMB results suggested. Cost of funds declined to 4.46 per cent from 5.01 per cent a year earlier but was largely flat against 4.45 per cent in the preceding quarter.

Fee and services income increased 11 per cent YoY to Rs 2,500 crore but declined from Rs 2,767 crore in Q4FY26. Operating expenses rose 8 per cent YoY to Rs 5,135 crore and remained largely flat QoQ. Cost-to-assets improved to 2.66 per cent from 2.83 per cent YoY and 2.73 per cent QoQ.

The bank said its operating profit grew 10 per cent YoY and 5 per cent QoQ to Rs 6,131 crore. Provisions fell 45 per cent YoY to Rs 668 crore but increased from Rs 516 crore in the March quarter. Annualised credit cost stood at 0.46 per cent, compared with 0.93 per cent a year earlier and 0.39 per cent in Q4FY26.

Net advances increased 15 per cent YoY to Rs 5,12,249 crore as on June 30, 2026. Customer assets, comprising advances (including IBPC and BRDS) and credit substitutes, rose 16 per cent YoY to Rs 5,70,901 crore.

Total period-end deposits grew 12 per cent YoY to Rs 5,72,820 crore, while average total deposits increased 14 per cent YoY to Rs 5,58,891 crore. Average current deposits rose 15 per cent YoY to Rs 78,107 crore, average fixed-rate savings deposits grew 16 per cent YoY to Rs 1,25,061 crore, and average term deposits increased 14 per cent YoY to Rs 3,41,992 crore. The CASA ratio stood at 40.3 per cent as on June 30, 2026, compared with 40.9 per cent a year earlier.

Interest earned for the quarter came in at Rs 14,477.49 crore compared with Rs 13,836.54 crore in the year-ago quarter. 

Gross non-performing assets (NPAs) stood at Rs 6,121.83 crore, with percentage of gross NPAs to gross advances coming in at 0.27 per cent for the quarter.

KMB said its slippages for the quarter fell to Rs 1,321 crore, down 27 per cent YoY from Rs 1,812 crore in Q1FY26.

As at June quarter, provision coverage ratio stood at 78 per cent against 77 per cent as on June 30, 2025.

Standalone Return on Assets (RoA) for Q1FY27 (annualised) stood at 2.14 per cent. Return on Equity (RoE) for Q1FY27 (annualised) was 11.98 per cent. Capital Adequacy Ratio of the lender, as per Basel III, as at June 30, 2026 was 22.8 per cent and CET1 ratio of 22.4 per cent.