Kotak Mahindra Bank Q4 earnings: Net profit rises 13% to ₹4,027 crore, net interest income advances 8%

Kotak Mahindra Bank, the country's fourth largest private sector lender by market capitalisation, on Saturday, May 2, said that it earned a net profit of ₹4,027 crore in January-March quarter, marking an increase of 13% from ₹3,552 crore in the same period last year. The uptick in profit came on the back of sharply lower provisions for bad loans and improvement in asset quality.

The bank's provisions for bad loans reduced by 43% to ₹516 crore as against ₹909 crore in the corresponding quarter last financial year.

For financial year 2025-26 (Q4FY26), its net profit declined 15% to ₹14,008 crore.

The Mumbai-based lender's net interest income or difference between interest earned on loans and expended on deposits rose 8% to ₹7,875 crore in the fourth quarter of financial year 2025-26, up from ₹7,284 crore in the year-ago period.

Net interest margin was 4.67% for Q4FY26 compared with 4.97% for Q4FY25 and 4.54%.

Kotak Mahindra Bank's asset quality showed an improvement as its gross non-performing assets (NPAs), as a percentage of total advances, came in at 1.20% compared with 1.42% in the same period last year.

In absolute terms gross NPAs came in at ₹6,018 crore from ₹6,134 crore.

The bank's board announced a dividend of 65 paise per share.

Kotak Mahindra Bank's advances increased 16% year on year (YoY) to ₹4,96,009 crore as of March 31, 2026 from ₹4,26,909 crore as of March 31, 2025.

"Total period-end deposits grew to ₹5,72,456 crore for Q4FY26, up 15% YoY from ₹4,99,055 crore for Q4FY25. Average total deposits grew to ₹5,38,301 crore for Q4FY26, up 15% YoY from ₹4,68,486 crore for Q4FY25. Average current deposits grew to ₹77,058 crore for Q4FY26, up 18% YoY from ₹65,427 crore for Q4FY25. Average fixed rates savings deposits grew to ₹1,22,364 crore for Q4FY26, up 17% YoY from ₹1,04,379 crore for Q4FY25," Kotak Mahindra Bank said.

Kotak Mahindra Bank shares ended 0.34% lower at ₹383 on Thursday.