Kotak Bank Q3 Preview: PAT can grow by up to 3% YoY, while NII can grow by up to 5%. 7 things to know

Kotak Mahindra Bank is expected to report stable Q3 2026 numbers, with modest earnings growth and operating metrics, supported by healthy loan growth, stable margins and favorable asset quality trends. The private lender is likely to report a 1%-3% year-on-year increase in net profit in the December quarter, ranging from Rs 3,340 crore to Rs 3,480 crore, according to estimates from four brokerages.Net interest income (NII) is likely to rise 5% year-on-year to Rs 7,565 crore in the quarter under review, the estimates show.

While pre-provision operating profit (PPoP) growth is likely to remain subdued, analysts expect controlled credit costs and improving GNPA/NNPA ratios to support earnings resilience.Brokerage estimates used in this preview include PL Capital, Nuvama, Emkay Research and YES Securities.

The earnings will be announced on Saturday, January 24, 2026.

Here’s what brokers recommend:

1) PAT

— PL Capital: Rs 3,457 crore, up 5% YoY and 6% QoQ

— Nuvama: Rs 3,480 crore, up 5% YoY and 7% QoQ

— Emkay Research: Rs 3,340 crore, up 1% YoY and 3% QoQ

— YES securities: Rs 3,411 crore, up 3% YoY and 5% QoQ

2) SO

— PL Capital: Rs 7,476 crore, up 4% YoY and 2.3% QoQ

— Nuvama: Rs 7,470 crore, up 4% YoY and 2.2% QoQ

— Emkay Research: Rs 7,514 crore, up 4% YoY and 3% QoQ

— YES securities: Rs 7,565 crore, up 5% YoY and 3.5% QoQ

3) Operating result before provision (PPoP)

— PL Capital: Rs 5,490 crore, up 6% YoY and 4% QoQ

— Nuvama: Rs 5,500 crore, up 6.1% YoY and 4% QoQ

— Emkay Research: Rs 5,266 crore, up 2% YoY and flat QoQ

— YES securities: Rs 5,448 crore, up 5% YoY and 3% QoQ

4) NIM

— Nuvama: 4.60%, down 33 bps y-o-y, up 6 bps quarter-over-quarter

— Emkay Research: 4.5%, down 42 bps year-on-year and 3 bps quarter-on-quarter

— YES effects: A gradual moderation is expected as the decline in yields exceeds the decline in deposit costs

5) Loans and deposits

— Nuvama is providing loans of Rs 4.80 lakh crore, up 16% YoY and 4% QoQ, while deposits of Rs 5.43 lakh crore are up 15% YoY and 3% QoQ.

— YES Securities: Sequential credit growth is around 4%, driven by the bank’s idiosyncratic growth trajectory.

— PL Capital: double-digit credit growth over the medium term, supported by SMEs, secured retail and improving demand for unsecured (ex-MFIs)

6) Asset quality

— PL Capital: (GNPA) is at 1.39% in Q3FY26 vs. 1.45% in Q2FY26, while NNPA is at 0.32% in Q3FY26 vs. 0.37% in Q2FY26.

— Nuvama foresees provisions of Rs 880 crore, likely up 10.2% YoY and down 8% QoQ.

YES Effects: fewer consecutive derailments and facilities are expected.

7) Credit costs

— Nuvama: 0.73%, down 4 bps year-on-year and 9 bps quarter-on-quarter

— Emkay Research: Lower loan loss provisions to support profitability

— YES effects: a slight gradual moderation in credit costs is expected

Disclaimer: (Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)