Kotak Mahindra Bank Reports 26% Surge in Q2 Profit to ₹5,645 Crore
The bank's consolidated net profit for the second quarter of FY27 reached ₹5,645 crore, reflecting a significant year-on-year increase.
Net profit rose to ₹5,645 crore from ₹4,468 crore a year earlier.
Net Interest Margin (NIM) decreased to 4.31% due to liquidity changes.
Gross non-performing asset ratio improved to 1.04% from 1.39% year-on-year.
Kotak Mahindra Bank announced a remarkable 26% increase in its consolidated net profit for the quarter ending September 30, 2026, reaching ₹5,645 crore. This marks a significant rise from ₹4,468 crore reported in the same quarter last year. The bank disclosed these figures in a statement released on October 24, 2026, highlighting its strong financial performance in a competitive banking environment.
In comparison to the previous quarter, the bank's net profit also showed a slight decrease from ₹5,480 crore recorded in June 2026. The total income for the reported quarter was reported at ₹29,426.88 crore, indicating robust operational performance. However, the Net Interest Margin (NIM) for Q2 FY27 was noted at 4.31%, a decline from 4.54% in Q2 FY26 and 4.53% in Q1 FY27, attributed to increased liquidity from foreign currency non-resident bank (FCNR-B) deposits.
During this quarter, Kotak Mahindra Bank successfully mobilized FCNR-B deposits totaling ₹55,344 crore. The bank's CASA (Current Account Savings Account) ratio decreased to 38.2% from 42.5% in the previous year, primarily due to a rise in term deposits linked to the inflow of FCNR-B deposits. Additionally, net advances surged by 25% year-on-year, reaching ₹5.77 lakh crore as of September 30, 2026, up from ₹4.62 lakh crore a year prior.
The bank's capital adequacy ratio stood at 21.9% as per Basel III guidelines, with a Common Equity Tier 1 (CET1) ratio of 21.4%. The standalone Return on Assets (ROA) for Q2 FY27 was reported at 1.92%. Kotak Mahindra Bank also demonstrated strong asset quality, with the gross non-performing asset (GNPA) ratio improving to 1.04%, down from 1.39% in the same period last year, while the net non-performing asset (NNPA) ratio was recorded at 0.24%, compared to 0.32% in Q2 FY26.
Looking ahead, Kotak Mahindra Bank aims to maintain its growth trajectory while navigating the challenges posed by market dynamics. The bank's focus on enhancing asset quality and expanding its deposit base will be crucial as it prepares for the upcoming quarters and strives to deliver sustained value to its stakeholders.
