Kotak Mahindra Bank shares rise nearly 2% on Q3 updates; check what analysts said on lender's total deposits, CASA

The bank’s net advances grew 16% to ₹4.80 lakh crore in Q3 FY26 as compared to ₹4.13 lakh crore in Q3 FY25. Sequentially, it rose 3.8%. The average net advances jumped 16.2% year-on-year (YoY) to ₹4.65 crore as against ₹4 lakh crore. On a quarterly basis, the average net advances surged 4%.

The private lender’s total deposit for Q3 FY26 stood at ₹5.42 lakh crore, climbing 14.6% YoY from ₹4.73 lakh crore. It rose 2.6% on a quarter-on-quarter (QoQ) basis.

Further, the average total deposit increased 14.7% to ₹5.26 lakh crore in contrast to ₹4.58 lakh crore YoY, while on a quarterly basis, it advanced 3.1%.

Kotak Mahindra Bank’s case account and savings account (CASA) jumped 12% YoY to ₹2.24 lakh crore as compared to ₹2 lakh crore in Q3 FY25. On a QoQ basis, it edged up marginally by 0.2%.

The average CASA for the quarter under review grew 9% and 5% on a YoY and QoQ basis, respectively, to ₹2.07 lakh crore.

Here's what analysts said

Analysts at Nomura said in a note that Kotak Mahindra Bank’s loan and deposit growth outlook remains robust, positioning the lender to deliver loan growth of around 16.5% YoY and deposit growth of 14–15% YoY in FY26F—the highest among large private-sector banks.

However, its NIMs and credit costs, where the bank underperformed peers in Q2 FY26, remain the key monitorable heading into Q3 results, the analysts added.

Jefferies analysts noted that during the December quarter, Kotak Mahindra Bank posted healthy loan growth of 16% YoY and 4% on a quarterly basis, broadly in line with Q2 FY26. They added that sector-wide credit growth has picked up, improving from 10% to 12%.

The analysts further added that deposit growth and CASA deposit growth remained healthy at 15% on a yearly basis, in line with the September quarter, and 12% YoY, compared with 11% in the June quarter, respectively. They added that period-end growth rates were broadly in line with quarterly average growth, although average CASA growth was marginally lower at 9% YoY.

Kotak Mahindra Bank share price

At 9:50 AM, shares of Kotak Mahindra Bank were trading at ₹2,191.70 apiece on NSE, marginally rising 0.04%.

Over a month’s time, the stock has gained 2%, while on a year-on-year basis, it has jumped over 23%. Shares of the firm had hit a 52-week high of ₹2,301.90 on April 22, 2025, and a 52-week low of ₹1,723.75 on January 13, 2025.

The lender has a total market capitalisation of ₹4.36 lakh crore, according to data from the NSE.

Kotak Mahindra Bank Q2 earnings

Kotak Mahindra Bank had reported a net profit of ₹3,253 crore in the second quarter of the 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 the 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 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 was ₹6,479.58 crore compared with 6,033.17 crore in the same period last year.