Kotak Mahindra Bank Q3 results: Profit rises 4% to Rs 3,446 crore; asset quality improves

Kotak Mahindra Bank on Saturday reported a steady performance for the quarter ending December 31, 2025, posting a standalone net profit of Rs 3,446 crore, up 4 per cent compared to Rs 3,305 crore in the same quarter last year.

The bank's board of directors, which met in Hyderabad, also cleared a proposal to raise funds up to Rs 15,000 crore through non-convertible debentures (NCDs) for the next financial year.

The private sector lender saw its Net Interest Income (NII) grow to Rs 7,565 crore, up 5 per cent from Rs 7,196 crore in the same period last year. However, the Net Interest Margin (NIM) witnessed a compression, standing at 4.54 per cent for Q3FY26 compared to 4.93 per cent in Q3FY25.

The bank demonstrated improved asset quality during the quarter. The gross non-performing assets (GNPA) declined to Rs 6,320 crore from Rs 6,266 crore a year ago. The GNPA ratio improved significantly to 1.30 per cent from 1.50 per cent in the previous year.

Similarly, the Net NPA ratio stood at a healthy 0.31 per cent, down from 0.41 per cent in the corresponding quarter of the previous year. Net NPAs were reported at Rs 1,497 crore. The provision coverage ratio was reported at 76 per cent.

Net advances grew by 16 per cent YoY to Rs 4,80,673 crore. Total deposits surged by 15 per cent to Rs 5,42,638 crore, with the CASA ratio standing at 41.3 per cent.