Kotak Mahindra Bank reports 23% rise in consolidated net profit in Q1 of FY27
New Delhi, July 18: Kotak Mahindra Bank today posted a 23 per cent year-on-year (YoY) increase in consolidated net profit to Rs 5,480 crore for the quarter ended June (Q1FY27).
In the corresponding quarter last year, the bank had reported Rs 4,472 crore profit. On a sequential basis, consolidated net profit was up 1 per cent.
On a standalone basis, the private sector lender reported a 26 per cent YoY increase in net profit to Rs 4,123 crore, driven by higher net interest income (NII) and lower provisions.
NII rose 9 per cent YoY to Rs 11,266 crore, while other income increased 8 per cent YoY to Rs 3,338 crore.
The bank’s net interest margin (NIM) declined to 4.53 per cent in Q1FY27 from 4.67 per cent in the preceding quarter and 4.65 per cent a year ago. Its cost of funds inched up by 1 basis point (bp) sequentially to 4.46 per cent.
Fresh slippages increased to Rs 1,321 crore during the quarter from Rs 1,018 crore in Q4FY26, but were lower than Rs 1,812 crore reported in Q1FY26.
Provisions and contingencies fell 45 per cent YoY but rose 29 per cent sequentially to Rs 668 crore.
The bank’s asset quality improved, with gross non-performing assets (GNPAs) declining to 1.18 per cent at the end of June 2026 from 1.20 per cent in the March quarter and 1.48 per cent a year earlier.
Net NPAs, however, edged up 2 bps sequentially to 0.27 per cent.
Net advances grew 15 per cent YoY and 3 per cent quarter-on-quarter (QoQ) to Rs 5.12 trillion.
The retail loan book expanded 12 per cent YoY, while the institutional book grew 20 per cent.
Within retail, home loans and loans against property each rose 15 per cent YoY. In the institutional segment, the corporate loan book grew 15 per cent YoY and the SME portfolio increased 20 per cent.
Total deposits at the end of the quarter stood at Rs 5.73 trillion, up 12 per cent YoY from Rs 5.13 trillion a year earlier. Average total deposits rose 14 per cent YoY to Rs 5.59 trillion.
Average current account deposits increased 15 per cent YoY to Rs 0.78 trillion, while average fixed-rate savings deposits grew 16 per cent to Rs 1.25 trillion. Average term deposits rose 14 per cent YoY to Rs 3.42 trillion.
The bank’s current account savings account (CASA) ratio stood at 40.3 per cent as on June 30, 2026, compared with 40.9 per cent a year earlier. Its credit-to-deposit ratio increased to 89.4 per cent from 86.7 per cent a year ago. (BVI)
