Kotak Bank Q2 Profit Decline
- Kotak Mahindra Bank announced its financial results for the July-September quarter (Q2FY26) on Saturday, reporting a consolidated net profit of Rs 4,468.27 crore.
- On a standalone basis, reflecting core banking operations, the net profit decreased by 3% Y-o-Y to Rs 3,253 crore.
- the bank's Net Interest Income (NII) showed positive growth,increasing by 4.15% Y-o-Y to Rs 7,311 crore.However, other income experienced a decline of 3.5% Y-o-Y,reaching Rs 2,589 crore.
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Kotak Mahindra Bank reports 11.4% Decline in Q2FY26 Net Profit
Kotak Mahindra Bank announced its financial results for the July-September quarter (Q2FY26) on Saturday, reporting a consolidated net profit of Rs 4,468.27 crore. This represents an 11.4% year-on-year (Y-o-Y) decrease compared to the rs 5,044.05 crore reported in the same quarter last year. The decline is attributed to a dip in other income and a rise in provisions.
Detailed Performance Breakdown
On a standalone basis, reflecting core banking operations, the net profit decreased by 3% Y-o-Y to Rs 3,253 crore. This follows a net profit of Rs 3,282 crore in the previous quarter (Q1FY26).
the bank’s Net Interest Income (NII) showed positive growth,increasing by 4.15% Y-o-Y to Rs 7,311 crore.However, other income experienced a decline of 3.5% Y-o-Y,reaching Rs 2,589 crore.
The Net Interest Margin (NIM), a key indicator of lending profitability, decreased by 37 basis points (bps) Y-o-Y to 4.54% in Q2FY26. The previous quarter’s NIM was 4.65%.
Ashok Vaswani, MD & CEO of Kotak Mahindra Bank, stated that margins are expected to gradually increase as the impact of repo rate cuts is fully realized and deposits are repriced over the next two quarters.
Provisions and Asset Quality
Provisions and contingencies increased considerably by 43.5% Y-o-Y to Rs 947 crore, compared to Rs 660 crore in Q2FY25. In Q1FY26, provisions