Kotak Mahindra Bank Q3 results: Standalone PAT up 4% YoY, NII growing 5%

Private lender Kotak Mahindra Bank has reported a 4% year-on-year (YoY) increase in its standalone net profit, reported at Rs 3,446 crore for Q3FY26, compared to Rs 3,305 crore in the same period last year.Further, the bank’s net interest income (NII) also saw a 5% YoY growth to Rs 7,565 crore from Rs 7,196 crore in Q3FY25. Sequentially, it is up 3% from Rs 7,311 crore in Q2FY26.

Further, the consolidated PAT for Q3FY26 stood at Rs 4,924 crore, marking a 5% year-on-year increase from Rs 4,701 crore in Q3FY25 and a 10% sequential increase from Rs 4,468 crore in Q2FY26.Net interest margin (NIM) stood at 4.54% in Q3FY26, compared to 4.93% in Q3FY25, and remained flat from 4.54% in Q2FY26.

The bank’s total assets under management (AUM) stood at Rs 7,87,950 crore as on December 31, 2025, reflecting a 15% YoY increase from Rs 6,85,134 crore a year earlier, while domestic mutual fund AUM rose 20% YoY to Rs 5,86,610 crore.

In terms of asset quality, the gross non-performing assets (GNPA) ratio as of December 31, 2025 stood at 1.30%, compared to 1.50% a year earlier, while net NPA (NNPA) improved to 0.31% from 0.41% over the same period. The provision coverage ratio (PCR) was 76% as of December 31, 2025.

Kotak Mahindra Bank reported a 16% year-on-year (YoY) increase in net advances to Rs 4,80,673 crore as on December 31, 2025, compared to Rs 4,13,839 crore a year earlier. Customer assets, including advances (such as IBPC and BRDS) and credit substitutes, rose 15% year-on-year to Rs 5,29,455 crore, compared to Rs 4,59,436 crore in the same period last year. Total deposits at period end stood at Rs 5,42,638 crore for Q3FY26, registering a 15% YoY growth from Rs. 4,73,497 crore in Q3FY25. Average total deposits rose 15% year-on-year to Rs 4,58,614 crore from Rs 5,26,025 crore.

Within this period, average current deposits rose 14% y-o-y to Rs 75,596 crore, while average fixed-rate savings deposits rose 12% y-o-y to Rs 1,18,505 crore. Average term deposits rose 19% year-on-year to Rs 3,18,070 crore for the quarter, compared to Rs 2,67,743 crore in Q3FY25.

The CASA ratio was 41.3% as of December 31, 2025.

Provisions for Kotak Mahindra Bank stood at Rs 810 crore in Q3FY26, compared to Rs 794 crore in Q3FY25 and Rs 947 crore in Q2FY26. Annualized credit cost for the quarter was 0.63%, compared to 0.68% in Q3FY25 and 0.79% in Q2FY26.

The private lender reported a standalone return on assets (ROA) of 1.89% and a return on equity (ROE) of 10.68% for Q3FY26 (annualized). The bank’s capital adequacy ratio under Basel III standards was 22.6% as of December 31, 2025, with a CET1 ratio of 21.5%, including unaudited profits.

In a separate development, the bank’s board has also approved a proposal to raise funds through the issuance of unsecured, callable, non-convertible bonds in a private bank.
placement basis, for an amount up to Rs. 15,000 crore.

“In accordance with Regulation 30 and Regulation 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), this is to inform you that the Board of Directors of Kotak Mahindra Bank Limited (“Bank”) at their meeting today on January 24, 2026, has, inter alia, approved a proposal to enable the Board of Directors of the Bank to raise funds through issuance of unsecured, callable, non-convertible debentures, on a private placement basis, for an amount up to Rs 15,000 crore, in one or more tranches/series, during the financial year 2026-27, subject to the approval of the members of the Bank and such other approvals as may be necessary,” the bank said in its regulatory filing with the stock exchanges.