Kotak Mahindra Bank reported a 22.6% rise in consolidated net profit to ₹5,480.46 crore for the June 2026 quarter. Strong growth in advances and an improved asset quality profile drove the performance despite a slight contraction in net interest margins.
Kotak Mahindra Bank announced its financial results for the first quarter of the 2026-27 fiscal year on Saturday, showing a consolidated net profit of ₹5,480.46 crore. This is a 22.55% increase over the ₹4,472.18 crore reported in the same quarter last year. On a standalone basis, the bank’s net profit grew to ₹4,122.96 crore from ₹3,281.68 crore in the corresponding period of the previous year.
The bank’s core income from lending activities, known as net interest income, grew by 9% year-on-year to reach ₹7,928 crore. While this growth reflects the bank's expanded lending reach, the net interest margin—a key metric representing the difference between interest earned on loans and interest paid on deposits—softened to 4.53%. This compares to 4.65% in the same quarter a year ago and 4.67% in the previous quarter, indicating that the cost of gathering funds has risen slightly relative to the interest earned.
Deposit mobilization remained a key focus for the lender, with total deposits increasing 14% to ₹5.59 lakh crore. Within this, current account deposits rose by 15% to ₹78,107 crore, which typically helps banks lower their overall cost of funds. Lending activity also picked up, with total advances rising 15% to ₹5.28 lakh crore compared to ₹4.59 lakh crore a year earlier. Additionally, the bank recorded an 11% increase in fee and service income, which reached ₹2,500 crore.
From an asset quality perspective, the bank showed improvement during the June quarter. The gross non-performing asset ratio, which measures the proportion of bad loans, declined to 1.18% as of June 30, 2026. This is an improvement from the 1.48% recorded in the same period last year and the 1.20% reported in the quarter ending March 31, 2026.
Investors will likely track the bank's ability to maintain its margin levels in the coming quarters, especially as competition for deposits continues to influence the banking sector. Future updates to watch include the sustainability of loan growth and the trend in credit costs as the bank navigates the current interest rate environment.