Kotak Bank Q2 results: Net profit falls 2.7% YoY, NII up 4% at Rs 7,311 crore

Kotak Mahindra Bank

Private lender, Kotak Mahindra Bank on October 25 reported a 2.7 percent year-on-year fall in its standalone net profit to Rs 3,253 crore in the second quarter of the current financial year. In a year ago period, net profit stood at Rs 3,344 crore.

Net Interest Income (NII) for Q2FY26 increased to Rs 7,311 crore, up 4 percent YoY from Rs 7,020 crore in Q2FY25. Net Interest Margin (NIM) was 4.54 percent for Q2FY26. Cost of funds was 4.70 percent for Q2FY26.

Net Advances increased 16 percent YoY to Rs 462,688 crore as at September 30, 2025 from Rs 399,522 crore as at September 30, 2024.

As at September 30, 2025, GNPA was 1.39 percent and NNPA was 0.32 percent (GNPA was 1.49 percent and NNPA was 0.43 percent at September 30, 2024). As at September 30, 2025, Provision Coverage Ratio stood at 77 percent.

Average total deposits grew to Rs 510,538 crore for Q2FY26, up 14 percent YoY from Rs 446,110 crore for Q2FY25. Average current deposits grew to Rs 70,220 crore for Q2FY26, up 14 percent YoY from Rs  61,853 crore for Q2FY25.

Average Fixed rate Savings Deposits grew to Rs 113,894 crore for Q2FY26, up 8 percent YoY from Rs  105,584 crore for Q2FY25. Average Term Deposits grew to Rs 311,889 crore for Q2FY26, up 20 percent YoY from Rs 259,434 crore for Q2FY25.

CASA ratio as at September 30, 2025 stood at 42.3 percent. Activ Money grew 10 percent YoY to Rs  57,768 crore. Credit to Deposit ratio as at September 30, 2025 stood at 87.5 percent.

Standalone Return on Assets (ROA) for Q2FY26 (annualized) was 1.88 percent. Return on Equity (ROE) for Q2FY26 (annualized) was 10.38 percent.

Capital Adequacy Ratio of the Bank, as per Basel III, as at September 30, 2025 was 22.1 percent and CET1 ratio of 20.9 percent (including unaudited profits).