Kotak Mahindra Bank Q2 results: Profit dips 3% to Rs 3,253 crore, NII sees 4% growth

Kotak Mahindra Bank, one of India’s leading private sector lenders, reported a marginal decline in standalone profit for the quarter ended September 30, 2025. The bank’s Profit After Tax (PAT) fell 2.7 per cent year-on-year (YoY) to Rs 3,253 crore in Q2FY26, down from Rs 3,344 crore in the same quarter last year.

Core income showed steady momentum, with Net Interest Income (NII) rising 4 per cent YoY to Rs 7,311 crore, up from Rs 7,020 crore in Q2FY25. The bank’s Net Interest Margin (NIM) held steady at 4.54 per cent for the quarter.

On the business front, Kotak’s net advances grew 16 per cent YoY to Rs 4,62,688 crore, while average total deposits rose 14 per cent YoY to Rs 5,10,538 crore. The bank’s CASA ratio stood at a healthy 42.3 per cent.

Asset quality improved, with the Gross Non-Performing Assets (GNPA) ratio easing to 1.39 per cent from 1.49 per cent a year ago, and the Net NPAs dropping to 0.32 per cent from 0.43 per cent. The Provision Coverage Ratio (PCR) remained at 77 per cent.

At a consolidated level, PAT declined to Rs 4,468 crore from Rs 5,044 crore in Q2FY25. The bank’s Basel III Capital Adequacy Ratio (CAR) stood at a robust 22.8 per cent as of September 30, 2025.