Kotak Mahindra Bank (KOTAKBANK) investor relations material

Macroeconomic and industry environment

• Indian economy maintains strong fundamentals with 7.4% average real GDP growth over three years and a constructive outlook of ~7% growth ahead.

• Domestic consumption remains robust, government infrastructure investment is a priority, and credit growth is around 19%.

• Inflation is within RBI's tolerance band, with FY27 expected at ~5%, and fiscal deficit projected at 4.3% of GDP.

• Current account deficit is comfortable at ~1.5% of GDP, supported by remittances and healthy FX reserves of $707bn.

• Banking sector NPAs are at record lows (~1.8%), and corporate balance sheets are robust.

Business model and strategic pillars

• Operates as a diversified financial conglomerate with 100% ownership of key subsidiaries across lending, capital markets, asset management, and insurance.

• Strategic focus on four customer segments: high net-worth individuals, mass retail (Core India), SMEs, and institutional clients, each with tailored propositions.

• Independent product businesses (e.g., tractor finance, commercial vehicles) provide diversification and superior ROE.

• Technology, digital, and AI are core to operations, enabling scalable, resilient infrastructure and advanced analytics for risk and customer engagement.

Financial performance and key ratios

• FY26 PAT was ₹14,008 crore (up 2% YoY), with Q1FY27 PAT at ₹4,123 crore (up 26% YoY).

• NIM stood at 4.60% for FY26 and 4.53% for Q1FY27; ROA at 1.97% for FY26 and 2.14% for Q1FY27.

• Cost-to-income ratio improved to 45.6% in Q1FY27.

• CET-I ratio was 22.4% as of June 2026, reflecting strong capital adequacy.

• CASA ratio was 43.3% at March 2026 and 40.3% at June 2026.