Kotak Mahindra Bank (KOTAKBANK) Q3 25/26 earnings summary

Executive summary

• Net advances and deposits grew 16% and 15% year-over-year, respectively, with strong balance sheet expansion and a focus on granular CASA growth and responsible unsecured retail loan growth.

• Subsidiaries contributed 30% of consolidated profits, with significant contributions from banking, capital markets, insurance, and asset management.

• Consolidated PAT for Q3FY26 rose to ₹4,924 crore, up 5% year-over-year, with 10% sequential growth.

• The group continues to invest in automation, digitization, and technology resilience, scaling digital platforms and expanding customer segments.

• Results reflect the impact of the new Labour Codes, with incremental provisions recognized under employee costs.

Financial highlights

• Balance sheet and customer assets grew 15% year-over-year; net advances up 16% year-over-year.

• Consolidated total income for Q3 FY26 was ₹27,850.79 crore, up from ₹23,945.79 crore in Q3 FY25.

• PAT for Q3 was INR 3,400 crore (standalone) and consolidated PAT at ₹4,924 crore, up 5% year-over-year.

• Exceptional gain of ₹3,803.40 crore from the sale of a 70% stake in the general insurance subsidiary.

• Book value per share rose to ₹176, a 15% increase year-over-year.

Outlook and guidance

• Expectation of moderate NIM increase in Q4 due to CRR cut and seasonal effects; credit cost expected to decline further.

• The group will reassess the impact of the new Labour Codes based on final rules and industry practices.

• Focus on scaling digital platforms, expanding customer segments, and ongoing investment in technology and product innovation.

• Emphasis on inclusive and responsible growth, with a strong ESG framework and community initiatives.