Kotak Mahindra Bank (KOTAKBANK) Q2 25/26 earnings summary

Executive summary

• Achieved 16% YOY growth in net advances and 15% YOY growth in deposits, with a focus on scaling responsibly and maintaining risk prudence.

• Consolidated PAT for Q2FY26 was ₹4,468 crore, down 11% year-over-year; H1FY26 PAT (excluding KGI divestment) was ₹8,940 crore, down 6% year-over-year.

• Return on Assets (ROA) declined to 1.97% from 2.53% year-over-year; Return on Equity (ROE) dropped to 10.65% from 13.88%.

• Subsidiaries contributed 27% to consolidated profits, with asset management and insurance showing robust growth, but insurance and capital market segments saw declines.

• Consolidated and standalone unaudited financial results for the quarter and half-year ended September 30, 2025, were approved by the Board on October 25, 2025.

Financial highlights

• Standalone PAT for the quarter at ₹3,253 crore; consolidated profit at ₹4,468 crore.

• Net advances grew 16% year-over-year to ₹462,688 crore; deposits increased 15% to ₹528,776 crore.

• NIM at 4.54%, down 11 bps QOQ and from 4.91% year-over-year.

• Gross NPA ratio improved to 1.39% from 1.48% QOQ and 1.49% year-over-year; net NPA at 0.32%.

• Credit costs reduced to 79 bps, down 14 bps QOQ, with improvements in credit card and MFI portfolios.

Outlook and guidance

• Expect gradual improvement in NIM as deposit repricing and CRR benefits flow through, assuming no further repo cuts.

• Credit costs projected to moderate further in H2 FY26, especially in MFI and credit cards.

• Focus remains on digital transformation, customer-centric propositions, and scaling diversified financial services.

• Focus remains on building back retail unsecured business and maintaining cost discipline.

• No changes in significant accounting policies during the period.