Kotak Mahindra Bank Reports Stable Q2FY26 Financial Results with Strong Asset Growth

Kotak Mahindra Bank announced its financial results for the quarter ending September 30, 2025, showing stable performance. The bank's net profit for Q2FY26 was Rs 3,253 crore, slightly down from Rs 3,344 crore in Q2FY25. Average total deposits increased by 14% year-on-year to Rs 5,10,538 crore, while net advances rose by 16% to Rs 4,62,688 crore.

Average current deposits and fixed-rate savings deposits both saw a rise of 14% and 8% year-on-year, respectively. The CASA ratio remained strong at 42.3%. The bank serves 5.2 crore customers and has a credit-to-deposit ratio of 87.5%. Kotak Mahindra Bank maintained a robust Net Interest Margin (NIM) of 4.54%, with Net Interest Income (NII) increasing by 4% year-on-year to Rs 7,311 crore.

The cost of funds was reported at 4.70%. Operating expenses slightly increased to Rs 4,632 crore, while operating profit grew by 3% year-on-year to Rs 5,268 crore. The bank's provision coverage ratio stood at 77%, with improvements in gross non-performing assets (GNPA) and net non-performing assets (NNPA) to 1.39% and 0.32%, respectively.

Kotak Mahindra Bank highlighted its strong capitalization and consistent asset quality with an annualized Return on Equity (ROE) of 10.38% and Return on Assets (ROA) of 1.88%. The bank also maintained a healthy Capital Adequacy Ratio of 22.1% and a CET-1 ratio of 20.9%, showcasing its financial stability.

In comparison to Q2FY25, the bank's consolidated profit after tax (PAT) for Q2FY26 was Rs 4,468 crore, down from Rs 5,044 crore. Total assets under management (AUM) increased by 12% year-on-year to Rs 7,60,598 crore, while consolidated customer assets grew by 13% to Rs 5,76,339 crore.

The book value per share rose by 14% year-on-year to Rs 844, with the total net worth reaching Rs 1,67,935 crore. The bank reported a return on equity (ROE) of 10.65% and a consolidated return on assets (ROA) of 1.97%. The liquidity coverage ratio averaged at a solid 132% for the quarter.

Capital Adequacy and Subsidiary Earnings

The capital adequacy ratio under Basel III standards was robust at 22.8%, with a CET-I ratio of 21.8%. Among key subsidiaries, Kotak Securities recorded a net profit of Rs 345 crore; Kotak Asset Management earned Rs 258 crore; Kotak Prime reported Rs 246 crore; Kotak Investments made Rs 120 crore; Kotak Alternate Asset Managers achieved Rs 104 crore; and Kotak Life Insurance posted Rs 49 crore.

Kotak Mahindra Bank demonstrated strong growth in customer assets and balance sheet strength despite a slight decline in profitability. This solidified its position as one of India's leading private sector lenders.