Mumbai-based private lender Kotak Mahindra Bank reported a steady performance in the December quarter, supported by loan growth and improving asset quality, even as margins remained under pressure.
Kotak Mahindra Bank on Saturday reported a 5% year-on-year rise in consolidated net profit to ₹4,924 crore for the third quarter ended December 2025 (Q3 FY26). On a sequential basis, profit increased 10%.
On a standalone basis, the bank’s net profit grew 4% YoY to ₹3,446 crore, aided by stable net interest income and controlled credit costs.
Core Income Growth Remains Modest
Net Interest Income (NII) rose 5% YoY to ₹7,565 crore, while total advances grew 15% YoY to ₹4.99 trillion. Other income increased 8% YoY to ₹2,838 crore, supported by fee and treasury income.
Net interest margin (NIM) stood at 4.54%, flat sequentially but lower by 39 basis points YoY, reflecting higher funding costs.
Asset Quality Shows Continued Improvement
Asset quality improved during the quarter, with gross NPAs declining to 1.30%, down 20 basis points YoY. Net NPAs stood at 0.31%.
Fresh slippages came in at ₹1,605 crore, marginally lower than the previous quarter. Provisions increased slightly to ₹810 crore, up 2% YoY.
Retail, Wholesale Portfolios Post Healthy Growth
Net advances rose 16% YoY to ₹4.80 trillion, while customer assets climbed to ₹5.29 trillion.
- Home loans and LAP grew 18% YoY to ₹1.44 trillion
- Commercial banking expanded 7% YoY to ₹1.02 trillion
- Wholesale banking grew a strong 17% YoY to ₹1.52 trillion
However, the credit card portfolio declined 13% YoY, reflecting a strategic reset.
Management Commentary On Credit Cards, Growth
Commenting on the performance, Ashok Vaswani, MD & CEO, said the bank has revamped its credit card portfolio and expects traction over the next few quarters.
The bank also announced plans to raise up to ₹15,000 crore via non-convertible debentures (NCDs) in FY27, subject to approvals.
Deposit Growth Remains Strong
Total deposits increased 15% YoY to ₹5.42 trillion, with CASA ratio at 41.3%. Credit-to-deposit ratio stood at 88.6%, while cost of funds eased sequentially.
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