Kotak Mahindra Bank Q2 results: Net profit declines 3% to ₹3,253 crore, provisions jump by 43%, NII rises 4%

Kotak Mahindra Bank, the country's leading private sector lender, on Saturday, October 25, reported net profit of ₹3,253 crore in the second quarter of current financial year, marking a decline of 3% from ₹3,344 crore in the same period last year.

The decline in profit came on the back of higher provisions during the quarter. The bank's provisions for bad loans during the quarter jumped by 43% to ₹947 crore from ₹660 crore in the year-ago period.

The Mumbai-based lender's net interest income or the difference between interest earned on loans and expended on deposits rose 4.15% to ₹7,311 crore in July-September period from ₹7,020 crore in the same period last year.

Net interest margin was 4.54% for Q2FY26. Cost of funds was 4.70% for Q2FY26.

Kotak Mahindra Bank's showed an improvement in asset quality during the quarter as its gross non-performing assets (NPA), as a percentage of total advances, came in at 1.39% compared with 1.49% in the year-ago period. Its net NPA came in at 0.32% as against 0.43% in the year-ago period.

In absolute terms gross NPA were ₹6,479.58 crore compared with 6,033.17 crore in the same period last year.

The bank's net advances increased 16% year on year (YoY) to ₹4,62,688 crore as of September 30, 2025 from ₹399,522 crore as of September 30, 2024. Average total deposits grew to ₹5,10,538 crore for Q2FY26, up 14% YoY from ₹4,46,110 crore for Q2FY25. Average current deposits grew to ₹ 70,220 crore for Q2FY26, up 14% YoY from ₹ 61,853 crore for Q2FY25. Average fixed rate Savings Deposits grew to ₹1,13,894 crore for Q2FY26, up 8% YoY from ₹1,05,584 crore for Q2FY25, the bank said in a press release.

Fees and services for Q2FY26 increased to ₹ 2,415 crore, up 4% YoY from ₹ 2,312 crore in Q2FY25

Kotak Mahindra Bank shares ended 1.49% lower at ₹2,192.50 on Friday, a day ahead of its earnings announcement.