Kotak Mahindra Bank consol Q3 net profit up 5% YoY to ₹4,924 crore

The bank reported marginally higher provisions in Q3 at ₹810 crore, up 2 per cent YoY. However, sequentially, provisions of the lender was down 15 per cent

Kotak Mahindra Bank on Saturday reported a 5 per cent year-on-year (Y-o-Y) growth in its consolidated net profit to ₹4,924 crore for the October-December quarter (Q3) of FY26. Sequentially, the bank’s consolidated net profit was up 10 per cent.

 

On a standalone basis, the private sector lender reported a 4 per cent Y-o-Y growth in net profit to ₹3,446 crore in Q3, as provisions increased marginally, and net interest income and other income posted subdued growth. Sequentially, standalone net profit was up 6 per cent. 

 

Net Interest Income – the difference between interest earned and interest expended –  went up 5 per cent Y-o-Y and 3 per cent sequentially to ₹7,565 crore, even if  gross advances grew 15 per cent Y-o-Y and 4 per cent sequentially to ₹4.99 trillion.

 

Other income grew 8 per cent Y-o-Y and 10 per cent sequentially to ₹2,838 crore. 

 

Net interest margin (NIM), a measure of profitability of banks, at 4.54 per cent was stable sequentially. On a Y-o-Y basis, NIM was down 39 basis points. 

 

The bank reported marginally higher provisions in Q3 at ₹810 crore, up 2 per cent Y-o-Y. However, sequentially, provisions of the lender were down 15 per cent. 

 

Fresh slippages of the bank were at ₹1,605 core in Q3, compared to 1,629 crore in Q2, and ₹1,657 crore in Q3FY25.

 

Asset quality also improved, with gross non-performing assets (NPAs) at 1.30 per cent at the end of Q3FY26, down 9 bps from the previous quarter, and 20 bps from the year-ago period. Net NPAs stood at 0.31 per cent.

 

The bank’s net advances grew 16 per cent Y-o-Y and 4 per cent sequentially in Q3 to ₹4.80 trillion. Customer assets which comprise advances and credit substitutes grew to ₹5.29 trillion, up 15 per cent Y-o-Y.

 

In the bank’s consumer banking portfolio, while home loans and loan against property grew 18 per cent Y-o-Y and 5 per cent sequentially to ₹1.44 trillion, credit card portfolio declined 13 per cent YoY and 1 per cent sequentially. Its commercial banking portfolio reported 7 per cent Y-o-Y growth and 4 per cent sequential growth to ₹1.02 trillion. Additionally, its whole sale banking portfolio reported an impressive 17 per cent Y-o-Y and 4 per cent sequential growth to ₹1.52 trillion.  

“We are re-working the entire credit card business. We have completely revamped our product set, and launched a whole bunch of products. The new cards have landed well in the market place. From here onwards, we will be accelerating both the issuance and spends with various promotions. So, we will start seeing traction on credit cards in the next couple of quarters”, said Ashok Vaswani, MD&CEO, Kotak Mahindra Bank.

 

He added that overall credit card is a business that is very exciting, but also something that the bank has to be careful of. I feel very good about where we are with the credit card business, Vaswani said.

 

The bank’s total period-end deposits grew to ₹5.42 trillion, up 15 per cent Y-o-Y. Average Total Deposits grew to ₹5.26 trillion, up 15 per cent Y-o-Y, with average current deposits growing by 14 per cent Y-o-Y, average fixed rate savings deposits growing by 12 per cent Y-o-Y, and average term deposits growing by 19 per cent Y-o-Y during this period. Casa ratio as at December 31, 2025 stood at 41.3 per cent.

 

The bank's cost of funds was 4.54 per cent for Q3FY26, down from 4.70 per cent in Q2. Its credit to deposit ratio stood at 88.6 per cent.

 

Separately, the bank said its board has approved a proposal to raise ₹15,000 crore through non-convertible debentures (NCDs) on a private placement basis in FY27.   Commenting on whether the bank is looking at inorganic opportunities for growing its retail book, Vaswani said, “Retail is a business we like very much. We want to grow our book, be it organically or inorganically. In Q3, we have grown our retail book handsomely. As far as inorganic growth is concerned, we look at every single opportunity that comes up in the marketplace. We look at the opportunity and see if it strategically fits our business, and if it fits, then we look at the valuation to make sure it makes sense. If it ticks both, we normally would go ahead”.  

 

 

(Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)