Kotak Mahindra Bank Q2 Results: Profits Dip Slightly To Rs 3,253 Cr, NII Rises 4% YoY; Asset Quality Robust

On Saturday, October 25, Kotak Mahindra Bank reported steady standalone performance for the quarter ended September 30, 2025 (Q2FY26). In Q2FY25, the bank's net profit was Rs 3,344 crore; in Q2FY26, it stood at Rs 3,253 crore. Average total deposits rose 14% YoY to Rs 5,10,538 crore, while net advances jumped 16% YoY to Rs 4,62,688 crore. Average current deposits and fixed-rate savings deposits surged by 14% and 8% YoY, respectively, while the CASA ratio remained at a robust 42.3%.

The bank has 5.2 crore customers and an 87.5% credit-to-deposit ratio. With a robust Net Interest Margin (NIM) of 4.54% and a 4% YoY increase in Net Interest Income (NII) to Rs 7,311 crore, the cost of funds was 4.70%. Operating expenses increased barely to Rs 4,632 crore, while operating profit increased 3% YoY to Rs 5,268 crore. With a provision coverage ratio of 77%, gross non-performing assets (GNPA) and net non-performing assets (NNPA) improved to 1.39% and 0.32%, respectively.

Excellent capitalization and consistent asset quality were highlighted by the bank's annualized Return on Equity (ROE) of 10.38% and Return on Assets (ROA) of 1.88%, while it also maintained a good Capital Adequacy Ratio of 22.1% and CET-1 ratio of 20.9%.

Comparing Q2FY26 to Q2FY25, the bank recorded a consolidated profit after tax (PAT) of Rs 4,468 crore as opposed to Rs 5,044 crore. Total assets under management (AUM) rose 12% YoY to Rs 7,60,598 crore, while consolidated customer assets expanded 13% YoY to Rs 5,76,339 crore. The book value per share increased 14% YoY to Rs 844, while the total net worth was Rs 1,67,935 crore. The bank reported a 10.65% return on equity (ROE) and a consolidated return on assets (ROA) of 1.97%.

The liquidity coverage ratio averaged 132% for the quarter, while the capital adequacy ratio, as defined by Basel III standards, was robust at 22.8% with a CET-I ratio of 21.8%. A net profit of Rs 345 crore was recorded by Kotak Securities, Rs 258 crore by Kotak Asset Management, Rs 246 crore by Kotak Prime, Rs 120 crore by Kotak Investments, Rs 104 crore by Kotak Alternate Asset Managers, and Rs 49 crore by Kotak Life Insurance, among other important subsidiaries. Kotak Mahindra Bank saw strong growth in customer assets, balance sheet strength, and capital position notwithstanding a modest fall in profitability, solidifying its position as one of India's top private sector lenders.