Kotak Mahindra Bank reported a 26% year-on-year rise in standalone net profit to ₹4,123 crore for the first quarter of FY27, driven by lower provisions, steady credit growth and higher fee income. The bank’s consolidated net profit rose 23% to ₹5,480 crore during the April–June quarter, according to its unaudited financial results approved by the board.
Standalone net interest income (NII) increased 9% year-on-year to ₹7,928 crore, while operating profit climbed 10% to ₹6,131 crore. Fee and services income grew 11% to ₹2,500 crore, whereas provisions fell 45% to ₹668 crore, reflecting an improvement in credit costs. Net interest margin stood at 4.53% during the quarter. Net advances rose 15% year-on-year to ₹5.12 lakh crore, while total deposits increased 12% to ₹5.73 lakh crore. The bank’s customer base reached 5 crore as of June 30, 2026, with the CASA ratio at 40.3% and the credit-to-deposit ratio at 89.4%.
Asset quality strengthened further, with gross non-performing assets declining to 1.18% from 1.48% a year earlier and net NPAs easing to 0.27%. The provision coverage ratio improved to 78%, while the bank maintained a robust Basel III capital adequacy ratio of 22.8%. At the group level, customer assets grew 16% to ₹6.46 lakh crore, assets under management rose 8% to ₹8.06 lakh crore and domestic mutual fund AUM increased 10%. Key subsidiaries, including Kotak Securities, Kotak Asset Management, Kotak Mahindra Prime and Kotak Mahindra Life Insurance, also posted healthy quarterly profits.
The bank’s healthy earnings and stronger balance sheet are expected to support lending momentum in eastern India, including Kolkata, where demand for retail credit, home loans, MSME financing and investment products remains resilient. Industry observers believe the performance of large private sector lenders such as Kotak Mahindra Bank could strengthen credit availability for businesses and households in the region, while supporting investment activity and financial market confidence.
