Kotak Mahindra Bank on Saturday reported a 5 per cent year-on-year (Y-o-Y) growth in its consolidated net profit to ₹4,924 crore for the October-December quarter (Q3) of FY26. Sequentially, the bank’s consolidated net profit was up 10 per cent.
On a standalone basis, the private sector lender reported a 4 per cent Y-o-Y growth in net profit to ₹3,446 crore in Q3, as provisions increased marginally, and net interest income and other income posted subdued growth. Sequentially, standalone net profit was up 6 per cent.
Net Interest Income – the difference between interest earned and interest expended – went up 5 per cent Y-o-Y and 3 per cent sequentially to ₹7,565 crore, even if gross advances grew 15 per cent Y-o-Y and 4 per cent sequentially to ₹4.99 trillion.
Other income grew 8 per cent Y-o-Y and 10 per cent sequentially to ₹2,838 crore.
Net interest margin (NIM), a measure of profitability of banks, at 4.54 per cent was stable sequentially. On a Y-o-Y basis, NIM was down 39 basis points.
The bank reported marginally higher provisions in Q3 at ₹810 crore, up 2 per cent Y-o-Y. However, sequentially, provisions of the lender were down 15 per cent.
Fresh slippages of the bank were at ₹1,605 core in Q3, compared to 1,629 crore in Q2, and ₹1,657 crore in Q3FY25.
Asset quality also improved, with gross non-performing assets (NPAs) at 1.30 per cent at the end of Q3FY26, down 9 bps from the previous quarter, and 20 bps from the year-ago period. Net NPAs stood at 0.31 per cent.
The bank’s net advances grew 16 per cent Y-o-Y and 4 per cent sequentially in Q3 to ₹4.80 trillion. Customer assets which comprise advances and credit substitutes grew to ₹5.29 trillion, up 15 per cent Y-o-Y.
In the bank’s consumer banking portfolio, while home loans and loan against property grew 18 per cent Y-o-Y and 5 per cent sequentially to ₹1.44 trillion, credit card portfolio declined 13 per cent YoY and 1 per cent sequentially. Its commercial banking portfolio reported 7 per cent Y-o-Y growth and 4 per cent sequential growth to ₹1.02 trillion. Additionally, its whole sale banking portfolio reported an impressive 17 per cent Y-o-Y and 4 per cent sequential growth to ₹1.52 trillion.
The bank’s total period-end deposits grew to ₹5.42 trillion, up 15 per cent Y-o-Y. Average Total Deposits grew to ₹5.26 trillion, up 15 per cent Y-o-Y, with average current deposits growing by 14 per cent Y-o-Y, average fixed rate savings deposits growing by 12 per cent Y-o-Y, and average term deposits growing by 19 per cent Y-o-Y during this period. Casa ratio as at December 31, 2025 stood at 41.3 per cent.
The bank’s cost of funds was 4.54 per cent for Q3FY26, down from 4.70 per cent in Q2. Its credit to deposit ratio stood at 88.6 per cent.
Separately, the bank said its board has approved a proposal to raise ₹15,000 crore through non-convertible debentures (NCDs) on a private placement basis in FY27.
(Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)
