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 (NIM) a key measure of profitability, was lower at 4.54% against 4.91% in the corresponding quarter last year.
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 NPAor bad loans 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 increased to Rs 16,238.59 crore from Rs 15,900 crore in the same period last year. and return on assets (ROA) came in at 1.88%.
“Our focus will now be to gradually build back our retail unsecured business,” CEO Ashok Vaswani told reporters during a media call.
Slippages fall, provisions rise 43%
The bank’s fresh slippages during the quarter stood at Rs 1,629 crore, compared with Rs 1,875 crore a year ago, while total write-offs were Rs 1,099 crore.
CFO Devang Gheewalla said slippages have declined in the credit card and microfinance (MFI) segments but have increased in the retail commercial vehicle (CV) portfolio.
The country’s third-largest private lender by market capitalisation set aside 43% more funds for potential bad loans and other losses, at ₹947 crore, which weighed on the bottom line.
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.
The bank on Saturday also announced the reappointment of C.S. Rajan as chairman of the board until October 2027 after getting the Reserve Bank of India’s approval.
