October 25, 2026 | Business
Kotak Mahindra Bank reported a 29% year-on-year increase in standalone net profit for the quarter ended September 30, 2026, beating analysts’ expectations as loan demand strengthened and provisions for potential bad loans declined.
The Mumbai-based lender posted a standalone net profit of ₹4,211 crore, compared with ₹3,253 crore in the same quarter a year earlier, according to Reuters. Analysts surveyed by LSEG had expected profit of about ₹4,104 crore.
Loan demand supports income growth
Net interest income rose 16% year on year to ₹8,460 crore, supported in part by a 25% increase in domestic loans. Deposits grew 23%. Provisions for potential bad loans and other losses fell 15% to ₹804 crore, while other income increased 23% to ₹3,194 crore.
Margin narrows from the previous quarter
The bank’s net interest margin, a measure of the spread earned on lending and funding, declined to 4.31% from 4.53% in the June quarter. Reuters attributed the pressure partly to mobilisation of foreign-currency non-resident deposits during the period. The gross non-performing asset ratio improved to 1.04% at the end of September from 1.18% three months earlier.
What the numbers indicate
The results point to continued credit demand across corporate and retail segments, while the lower margin shows that deposit mix and funding costs remain important variables. Quarterly profit growth alone does not determine future performance; investors will also watch credit quality, margins and deposit costs in coming periods.
Sources: Reuters report dated October 24, 2026; Kotak Mahindra Bank’s official corporate identity page.
