Kotak Mahindra Bank reported a standalone net profit of Rs 3,253.33 crore for the second quarter (Q2FY26), down 2.7% compared to Rs 3,343.72 crore a year ago. In the previous quarter (Q1FY26), the bank reported a net profit of Rs 3,281.68 crore.
It’s net interest income(NII) increased 4% YoY to Rs 7,311 crore from Rs 7,020 crore in Q2 FY25, while the net interest margin remained at 4.54%. Operating profit rose 3% YoY to Rs 5,268 crore from Rs 5,099.25 in Q2FY25.
Key highlights: Asset quality improved
Asset quality of the bank improved during the quarter, with gross non-performing assets (GNPA) at Rs 6,480 crore, down from Rs 6,638 crore in the previous quarter (Q1FY26). Net NPA stood at Rs 1,491 crore, lower than Rs 1,531 crore in Q1FY26 and Rs 1,724 crore a year ago. The gross NPA ratio stood at 1.39%, while the net NPA ratio was 0.32%, compared with 1.48% and 0.34%, respectively, in Q1FY26.
Total income stood at Rs 16,238.59 crore and return on assets (ROA) came in at 1.88%.
Fresh slippages during the quarter were at Rs 1,629 crore compared to Rs 1,875 crore last year, while total write-offs stood at Rs 1,099 crore.
Customer assets and AUM see steady growth
On a consolidated basis, which includes the bank’s subsidiaries, Kotak Mahindra Bank reported a net profit of Rs 4,468 crore for Q2FY26, down 11% from Rs 5,044 crore in Q2FY25 and almost flat compared with Rs 4,472 crore in the previous quarter (Q1FY26). Total customer assets, including advances and credit substitutes, grew 13% year-on-year to Rs 5,76,339 crore, while assets under management (AUM) rose 12% YoY to Rs 7,60,598 crore. The bank’s domestic mutual fund equity AUM increased 14% YoY to Rs 3,62,694 crore.