Kotak Mahindra Bank
Kotak Mahindra Bank reported a 13.4 percent year-on-year increase in its fourth quarter (FY) net profit to Rs 4,026.55 crore. This was more than Bloomberg's estimate of Rs 3,663 crore. The bank's net interest income (NII)—a key measure of core earnings—grew 8.1 per cent year-on-year to Rs 7,876 crore, compared to Rs 7,284 crore in the same quarter last year. According to the company's stock exchange filing, the board of Kotak Mahindra Bank has recommended a dividend of Rs 0.65 on each equity share of face value of Re 1.
Operating profit increased by 7 percent on annual basis to Rs 5,855 crore. Interest income increased by 4.8 percent to Rs 14,175 crore, while interest expense increased by 0.9 percent to Rs 6,299 crore. Other income declined by 2.1 percent year-on-year to Rs 3,116 crore. In terms of asset quality, gross non-performing assets (NPAs) improved to 1.20 percent from 1.30 percent in the previous quarter. Net non-performing assets also declined quarter-on-quarter to 0.25 percent from 0.31 percent.
There was a huge decline of 36 percent quarter-on-quarter in provisions to Rs 516 crore, which supported the net profit of the bank. The bank's net interest margin in this quarter was 4.67 percent, whereas a year ago it was 4.97 percent and in the previous quarter it was 4.54 percent. The cost of funds declined to 4.45 percent from 5.09 percent a year ago.
In terms of balance sheet, net advances grew 16 per cent year-on-year to Rs 4.96 lakh crore as of March 31, 2026, while customer assets grew 14 per cent to Rs 5.46 lakh crore. Total deposits grew by 15 per cent year-on-year to Rs 5.72 lakh crore, while the CASA ratio stood at 43.3 per cent. The credit-to-deposit ratio at the end of the quarter stood at 86.6 percent. In this quarter, slippage declined by 32 percent year-on-year and came down to Rs 1,018 crore.
Whereas the provision coverage ratio was 79 percent. Ahead of the results, Kotak Mahindra Bank shares gained about 0.5 per cent on Friday and closed at Rs 383.75 on the NSE. This stock has declined 12.2 percent in one year, which is a very poor performance compared to the benchmark Nifty 50. Nifty 50 has declined by 1.3 percent during the same period.
