Kotak Mahindra Bank Q2 results: Net profit down 3% to Rs 3,253 crore, NII up 4% to Rs 7,311 crore

Kotak Mahindra Bank on Saturday, October 25, reported a 2.7% year-on-year decline in standalone net profit for the September quarter to Rs 3,253 crore, compared to Rs 3,344 crore in the same period a year ago.

Net interest income (NII) for Q2FY26 rose to Rs 7,311 crore, up 4% year-on-year compared to Rs 7,020 crore in Q2FY25.

The bank reported a net interest margin (NIM) of 4.54% for Q2FY26, while borrowing costs stood at 4.70% during the same period. Operating profit for Q2FY26 rose to Rs 5,268 crore, up 3% year-on-year from Rs 5,099 crore in Q2FY25, the company said in a stock exchange filing on October 25.

Net advances rose 16% year-on-year to Rs 462,688 crore during the quarter under review, compared to Rs 399,522 crore reported in the same quarter of the previous fiscal.

As of September 30, 2025, the bank’s gross non-performing assets (GNPA) was 1.39% and net non-performing assets (NNPA) was 0.32%, an improvement from 1.49% and 0.43% respectively from Q2FY25. The Provision Coverage Ratio was 77% as of the same date. Under Basel III standards, the bank reported a Capital Adequacy Ratio of 22.1% and a CET1 ratio of 20.9%, including unaudited profits.

The bank’s average total deposits rose to Rs 510,538 crore in Q2FY26, up 14% year-on-year from Rs 446,110 crore in Q2FY25. Average current deposits rose to Rs 70,220 crore, growing 14% YoY from Rs 61,853 crore, while average fixed rate savings deposits grew 8% YoY from Rs 105,584 crore to Rs 113,894 crore. Average term deposits saw the highest growth, rising 20% ​​year-on-year to Rs 311,889 crore from Rs 259,434 crore. CASA ratio stood at 42.3% as on September 30, 2025, while Kotak’s credit-to-deposit ratio stood at 87.5% as on the same date. As of September 30, 2025, the bank served 5.2 crore customers. Fees and services revenue for Q2FY26 rose 4% year-on-year to Rs 2,415 crore, compared to Rs 2,312 crore in Q2FY25. Operating expenses rose marginally to Rs 4,632 crore, up 1% year-on-year from Rs 4,605 ​​crore. Annualized credit costs for the second quarter of 2026 were 0.79%, an improvement from 0.93% in the first quarter of 2026. The bank reported an annualized standalone return on assets (ROA) of 1.88% and a return on equity (ROE) of 10.38% for the quarter.

The lender’s shares closed Friday’s session at Rs 2,192 per share, down 1.5% from the last closing price on the NSE. Kotak Bank shares are up 23% this year.