Noida, Apr 2 (APAC Media): Kotak Mahindra Bank on Saturday reported a 13% year-on-year increase in net profit for the March quarter of FY26 at Rs 4,027 crore, compared with Rs 3,552 crore in the corresponding period of the previous financial year.
Net interest margin (NIM) stood at 4.67% for the quarter, improving by 13 basis points sequentially, though declining 30 basis points from 4.97% in Q4FY25.
The bank indicated that margin compression is expected to ease going ahead, supported by gradual deposit repricing in the second half of the year.
The board recommended a dividend of Rs 0.65 per equity share (face value Rs 1) for FY26, subject to shareholder approval.
Kotak Mahindra Bank said total period-end deposits rose 15% year-on-year to Rs 5,72,456 crore as of March 31, 2026, while average total deposits also increased 15% to Rs 5,38,301 crore in the March quarter of FY26.
On asset quality, the bank said slippages declined 32% YoY to Rs 1,018 crore in Q4FY26. Gross non-performing assets (GNPA) stood at 1.20% and net non-performing assets (NNPA) at 0.25% as of March 31, 2026, compared with 1.42% and 0.31%, respectively, a year earlier.
The bank said average current deposits grew 18% YoY to Rs 77,058 crore, while average fixed-rate savings deposits rose 17% to Rs 1,22,364 crore. Average term deposits were up 16% YoY at Rs 3,26,403 crore.
Cost of funds declined to 4.45% in Q4FY26 from 5.09% in the year-ago period and 4.54% in the preceding quarter. For the full year, cost of funds stood at 4.67%, compared to 5.10% in FY25.
Fee and services income rose 6% YoY to Rs 2,767 crore in Q4FY26, while operating expenses increased 3% YoY to Rs 5,137 crore. For the full year, fee income grew 5% to Rs 9,981 crore and operating expenses rose 4% to Rs 19,566 crore.
Operating profit for the quarter came in at Rs 5,855 crore, up 7% YoY. For FY26, operating profit rose 5% to Rs 22,067 crore.
Provisions declined sharply by 43% YoY to Rs 516 crore in Q4FY26, contributing to improved profitability. Credit cost for the quarter stood at 0.39%, compared with 0.64% in Q4FY25.
On the asset side, net advances grew 16% YoY to Rs 4,96,009 crore as of March 31, 2026. Customer assets expanded 14% YoY to Rs 5,45,716 crore.
Overall, the bank’s performance was supported by steady loan growth, controlled costs, and a significant reduction in provisions during the quarter.
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