Kotak Mahindra Bank reported a stronger-than-expected first-quarter profit, supported by healthy loan growth and improved asset quality. Net interest income rose 9%, while advances and deposits continued to grow at a double-digit pace.
Highlights
- Net profit rose 26% YoY to ₹4,122.96 crore.
- Net Interest Income (NII) increased 9% to ₹7,928 crore.
- Profit beat analysts’ estimate of ₹3,910 crore.
- Gross and Net NPAs improved on a yearly basis.
- Net advances grew 15% to ₹5.12 lakh crore.
- Strong results may keep Kotak Mahindra Bank shares in focus on Monday.
Kotak Mahindra Bank reported a strong set of earnings for the first quarter of FY27, with net profit rising 26% year-on-year to ₹4,122.96 crore, beating market expectations. The bank had posted a profit of ₹3,282 crore in the same quarter last year, while analysts had estimated a profit of around ₹3,910 crore.
The bank’s Net Interest Income (NII), which reflects earnings from lending activities, increased 9% to ₹7,928 crore from ₹7,259 crore a year ago. However, this was slightly below analysts’ expectations of ₹8,058 crore. Net Interest Margin (NIM) stood at 4.53%, compared with 4.65% in the corresponding quarter last year.
Kotak Mahindra Bank also reported an improvement in its overall asset quality. Gross NPA declined nearly 8% year-on-year to ₹6,122 crore, while Net NPA fell 11% to ₹1,358 crore. The Gross NPA ratio stood at 1.18%, and the Net NPA ratio was 0.27%. Fresh slippages during the quarter declined 27% to ₹1,321 crore, indicating better control over stressed assets.
On the business front, the bank maintained strong momentum in lending. Net advances increased 15% year-on-year to ₹5.12 lakh crore, reflecting healthy credit demand. The bank also recorded double-digit growth in deposits, strengthening its balance sheet. Its net worth rose over 14% to ₹1.4 lakh crore.
Following the better-than-expected earnings, Kotak Mahindra Bank is likely to remain in focus when the stock market opens on Monday. The shares had closed 3.57% higher in the previous trading session. Despite this recent gain, the stock is still down around 4% over the past month, 12% so far in 2026, and more than 10% over the last one year.
