Kotak Mahindra Bank shares rose nearly 4% on Tuesday after reporting a 24.7% year-on-year increase in net advances and a 23.2% rise in total deposits for the September quarter. These provisional figures indicate strong credit and deposit momentum, though the data remains subject to a final audit review.
Kotak Mahindra Bank saw its share price climb nearly 4% in Tuesday's trade as investors reacted to the bank's provisional business updates for the quarter ending September 30, 2026. The lender reported significant expansion in both its loan book and deposit base, reflecting strong demand in the banking sector.
Strong Loan and Deposit Expansion
The bank reported that its net advances grew by 24.7% year-on-year to Rs 5.77 lakh crore. Simultaneously, total deposits saw a 23.2% rise, reaching Rs 6.51 lakh crore compared to the same period last year. This growth is particularly relevant for investors as banks are currently focused on attracting stable deposits to fuel their credit growth while managing high interest rates.
CASA deposits, which include low-cost current and savings accounts, also showed growth, rising 11.3% year-on-year to Rs 2.49 lakh crore. A healthy CASA ratio is often monitored by analysts as it helps banks manage their cost of funds, potentially protecting profit margins.
Understanding the Liquidity Picture
It is important for investors to note the composition of these figures. The bank’s reported deposit numbers include $5.78 billion, or approximately Rs 55,344 crore, held under the Reserve Bank of India’s foreign currency swap facility. These inflows play a role in the bank’s total liquidity position.
As these figures are provisional and subject to a limited review by the bank’s statutory auditors, the final quarterly results may show minor adjustments. Investors should watch for the full financial results to understand the impact of this growth on net interest margins and overall profitability, as maintaining such growth while keeping costs under control remains a key challenge for the banking sector in the current interest rate environment.
The next important update for shareholders will be the detailed quarterly earnings report, which will provide a clearer picture of the bank's operational efficiency, asset quality, and how these business volume increases translate into actual profit growth.