Kotak Bank Q3 Results: Private sector lender Kotak Mahindra Bank on Saturday, January 24, reported a consolidated net profit of ₹3,446 crore for the December quarter of FY26, marking a 4.3% year-on-year increase from ₹3,305 crore in the corresponding period last year.
The bank’s operating profit for the quarter rose 4% year-on-year to ₹5,380 crore, compared with ₹5,181 crore in Q3FY25, supported by steady core income growth. Net interest income (NII) increased around 5% on a year-on-year basis to ₹7,565 crore during the quarter, reflecting healthy lending activity and stable margins.
The improvement in profitability was driven primarily by higher interest earnings, with NII growth outpacing the rise in operating profit. The performance underscores Kotak Mahindra Bank’s ability to deliver consistent earnings growth despite a challenging operating environment for the banking sector.
Asset quality improves, balance sheet expands
The bank reported a sequential improvement in asset quality during the December quarter, with gross non-performing assets (GNPA) declining to 1.30% from 1.39% in Q2 FY26. Net non-performing assets (NNPA) also edged lower to 0.31% compared with 0.32% in the previous quarter. In absolute terms, net NPAs stood at ₹1,497 crore, marginally higher than ₹1,491 crore a year ago, while gross NPAs fell to ₹6,320 crore from ₹6,479.5 crore in the corresponding period last year.
Consolidated customer assets, including advances and credit substitutes, rose 15% year-on-year to ₹598,780 crore as of December 31, 2025. Total customer assets under management also grew 15% YoY to ₹787,950 crore, supported by steady growth across businesses. Domestic mutual fund assets under management increased 20% YoY to ₹586,610 crore during the quarter.
The bank’s consolidated net worth stood at ₹175,251 crore, while book value per share rose to ₹176 following the 1:5 share subdivision that became effective on January 14, 2026. On an annualised basis, consolidated return on assets (RoA) for Q3 FY26 was 2.10%, while return on equity (RoE) stood at 11.39%.
Deposits, advances grow; board clears ₹15,000 crore fund raise
On a standalone basis, net advances increased 16% YoY to ₹480,673 crore, while customer assets rose 15% to ₹529,455 crore. Period-end deposits grew 15% YoY to ₹542,638 crore, with the CASA ratio reported at 41.3%. The credit-to-deposit ratio stood at 88.6%, and the bank’s customer base expanded to 5.1 crore. Average cost of funds declined to 4.54% from 5.06% in Q3 FY25, reflecting improved funding efficiency.
Separately, the bank said its board of directors has approved plans to raise up to ₹15,000 crore through the issuance of unsecured, redeemable, non-convertible debentures on a private placement basis during FY 2026–27. The proposed fundraising may be carried out in one or more tranches or series, subject to shareholder approval and receipt of necessary regulatory clearances.
