The country’s leading private sector lender, Kotak Mahindra Bank on Saturday, July 26, reported a net profit of ₹3,282 crore in the first quarter of the current financial year, down 8% from ₹3,552 crore in the previous quarter.
On a yearly basis, the profit figures are not comparable as the bank had made an exceptional profit of ₹3,520 crore last year by selling its 70% stake in Kotak Mahindra General Insurance to Zurich Insurance Company Limited.
The bank’s provision in the first quarter more than doubled to ₹1,208 crore from ₹578 crore in the same quarter last year.
The bank’s net interest income, i.e. the difference between interest earned on loans and spent on deposits, rose 6% to ₹7,259 crore from ₹6,842 crore in the same period last year.
The bank’s asset quality saw a marginal deterioration on the gross non-performing assets (NPA) front in the April-December period. Its gross NPA as a percentage of total advances increased to 1.48% from 1.39% in the same period a year ago and 1.42% in the previous quarter.
In absolute terms, gross NPA stood at ₹6,638 crore, up from ₹5,477 crore in the same period last year and ₹6,134 crore in the previous quarter.
Its net NPA stood at 0.34%, compared to 0.31% in the previous quarter and 0.35% in the same period a year ago.
The Bank delivered a strong operational performance in Q1 FY26 with good growth in advances and deposits.
Total advances as on June 30, 2025 grew 14% y-o-y to ₹4,44,823 crore as against ₹3,89,957 crore a year ago. Unsecured retail advances, including retail microcredit, accounted for 9.7% of net advances, indicating a balanced risk outlook within the growing retail portfolio.
Average total deposits stood at ₹4,91,998 crore in Q1 FY26, reflecting a 13% y-o-y growth from ₹4,35,603 crore in the same period last year. Average term deposits led the growth, rising 19% y-o-y to ₹3,00,003 crore, while current account deposits grew 9% to ₹67,809 crore. Kotak Mahindra Bank said in a press release that savings deposits witnessed a marginal growth of 2% y-o-y to ₹1,24,186 crore.
The CASA ratio remained stable at 40.9% as of June-end, while the term deposit sweep balance witnessed a growth of 23% y-o-y to ₹59,098 crore. The loan-to-deposit ratio stood at 86.7%, reflecting balanced asset-liability management.
The bank maintained its cost discipline by keeping the cost of funds at 5.01% for Q1 FY26. The Mumbai-based lender further said that operating profit grew 6% y-o-y to ₹5,564 crore, up from ₹5,254 crore in the corresponding quarter of the previous year – indicating stable core earnings momentum.
The total number of customers grew to 5.4 crore as of June 30, 2025, as against 5.1 crore a year ago, reflecting a sustained growth in customer acquisition.
Kotak Mahindra Bank shares closed 0.77% lower at ₹2,124.95 a day ahead of its earnings announcement.
