Kotak Mahindra Bank Q1 Results 2026: Net profit rises 22.5% to ₹5,480 crore

Kotak Mahindra Bank Q1 Results 2026: Kotak Mahindra Bank announced its earnings for the quarter ended June 2026 on Saturday, July 18, 2026. The private sector lender reported a 22.5% year-on-year increase in its consolidated net profit for the June quarter (Q1 FY27) at ₹5,480.46 crore, compared with ₹4,472.18 crore in the corresponding quarter of the previous financial year.

The bank's total income rose to ₹30,068.60 crore during the quarter, while its standalone net profit came in at ₹4,122.96 crore.

NII and Margins

Kotak Mahindra Bank reported healthy growth in its core lending income during the June quarter, although its profitability from interest-earning assets moderated.

The bank's net interest income (NII) — the difference between interest earned and interest paid — increased 9% year-on-year to ₹7,928.43 crore from ₹7,259 crore in the corresponding quarter last year.

Meanwhile, the net interest margin (NIM) stood at 4.53% for the quarter, compared with 4.65% a year earlier.

Asset Quality

Kotak Mahindra Bank continued to strengthen its asset quality during the quarter, with both gross and net bad loan ratios improving from a year ago.

The bank's gross non-performing asset (GNPA) ratio declined to 1.18% as of June 30, 2026, from 1.48% in the year-ago period. The net NPA ratio also improved to 0.27%, compared with 0.34% a year earlier.

Fresh slippages during the quarter fell 27% year-on-year to ₹1,321 crore, while the provision coverage ratio (PCR) improved to 78% from 77% in the corresponding period last year.

Other Q1 Highlights

Kotak Mahindra Bank reported a healthy improvement in its operating performance during the June quarter, with operating profit rising 10% year-on-year to ₹6,131 crore, compared with ₹5,564 crore in Q1 FY26. On a sequential basis, operating profit increased 5% from ₹5,855 crore reported in Q4 FY26.

The bank also witnessed a sharp decline in provisions during the quarter. Provisions stood at ₹668 crore in Q1 FY27, down 45% from ₹1,208 crore in the corresponding quarter last year. In the preceding quarter (Q4 FY26), provisions were ₹516 crore.

Kotak Mahindra Bank continued to record double-digit growth in both lending and deposits during the June quarter. Net advances increased 15% year-on-year to ₹5,12,249 crore as of June 30, 2026, compared with ₹4,44,823 crore a year earlier.

Customer assets, comprising advances (including IBPC and BRDS) and credit substitutes, grew 16% year-on-year to ₹5,70,901 crore, up from ₹4,92,972 crore as of June 30, 2025.

On the liabilities side, total period-end deposits rose 12% year-on-year to ₹5,72,820 crore, while average total deposits increased 14% to ₹5,58,891 crore.

The bank's CASA ratio stood at 40.3% as of June 30, 2026, compared with 40.9% a year earlier. The provision coverage ratio (PCR) improved to 78% as of June 30, 2026, compared with 77% in the corresponding period last year.

The lender's annualised standalone return on assets (ROA) stood at 2.14% during Q1 FY27, while the annualised return on equity (ROE) came in at 11.98%. The bank also maintained a strong capital position, with its Basel III Capital Adequacy Ratio (CAR) at 22.8% as of June 30, 2026. Its Common Equity Tier 1 (CET1) ratio stood at 22.4%, reflecting a comfortable capital buffer.

Kotak Mahindra Bank Share Price

Shares of Kotak Mahindra Bank ended Friday's trading session at ₹389.95, up 3.57%. Despite the rally, the bank stock has declined around 4% in 1 month, 12% so far in 2026. It has also fallen over 10% in the last 1 year.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.