Kotak Mahindra Bank Q1 results: Net profit comes in at ₹3,282 crore; NII rises 6% YoY

Kotak Mahindra Bank, the country's leading private sector lender, on Saturday, July 26, reported net profit of ₹3,282 crore in the first quarter of current financial year, marking a decline of 8% from ₹3,552 crore in the previous quarter.

On an annual basis, profit figures are not comparable as the bank had earned an exceptional gain of ₹3,520 crore from sale of 70% stake in Kotak Mahindra General Insurance to Zurich Insurance Company Limited last year.

The bank's provisions in Q1 more than doubled to ₹1,208 crore from ₹578 crore in the year-ago period.

The bank's net interest income or the difference between interest earned on loans and expended on deposits rose 6% to ₹7,259 crore from ₹6,842 crore in the corresponding period last year.

The bank's asset quality, in April-December period, showed a slight deterioration at gross non-performing assets (NPA) front. Its gross NPA, as a percentage of total advances, rose to 1.48% from 1.39% in the year-ago period and 1.42% in the previous quarter.

In absolute terms, gross NPA came in at ₹6,638 crore, up from ₹5,477 crore in the corresponding period last year and ₹6,134 crore in the previous quarter.

Its net NPA came in at 0.34% as against 0.31% in the previous quarter and 0.35% in the year-ago period.

The bank delivered strong operational performance in Q1FY26, with healthy growth across advances and deposits

Total advances rose 14% year-on-year to ₹4,44,823 crore as of June 30, 2025, compared to ₹3,89,957 crore a year earlier. Unsecured retail advances, including retail microcredit, constituted 9.7% of net advances, indicating a calibrated risk approach within the growing retail portfolio.

Average total deposits stood at ₹4,91,998 crore in Q1FY26, registering a 13% YoY rise from ₹4,35,603 crore in the year-ago period. Average term deposits led the growth, surging 19% YoY to ₹3,00,003 crore, while current account deposits rose 9% to ₹67,809 crore. Savings deposits saw modest growth of 2% YoY to ₹1,24,186 crore, Kotak Mahindra Bank said in a press release.

The CASA ratio remained healthy at 40.9% as of June-end, while term deposit sweep balances witnessed 23% YoY uptick to ₹59,098 crore. The credit-to-deposit ratio stood at 86.7%, reflecting balanced asset-liability management.

The bank maintained its cost discipline with a cost of funds at 5.01% for Q1FY26. Operating profit rose 6% YoY to ₹5,564 crore, up from ₹5,254 crore in the same quarter last year—indicating steady core earnings momentum, the Mumbai-based lender added.

The total number of customers grew to 5.4 crore as of June 30, 2025, compared to 5.1 crore a year earlier, highlighting continued traction in customer acquisition.

Kotak Mahindra Bank shares ended 0.77% lower at ₹2,124.95 a day ahead of its earnings announcement.