Highlights

• Kotak Mahindra Bank reported 13% year-on-year growth in standalone Q4FY26 profit.
• Net advances and total deposits recorded double-digit annual growth during FY26.
• Gross non-performing asset ratio improved to 1.20% as of March 2026.

Kotak Mahindra Bank Limited shares declined 1.56% on May 18, 2026, traded at INR 381.00 compared with the previous close of INR 387.05. The stock opened at INR 382 and touched an intraday low of INR 380.30 during the trading session.

Source: TradingView

NII and Operating Profit Register Growth

Kotak Mahindra Bank reported net interest income of INR 7,876 crore for Q4FY26, up 8% year-on-year and 4% quarter-on-quarter. FY26 NII increased 6% year-on-year to INR 30,010 crore. Net interest margin for the quarter stood at 4.67% compared with 4.97% in Q4FY25 and 4.54% in Q3FY26. Cost of funds for Q4FY26 declined to 4.45% from 5.09% in the year-ago quarter.

Fees and services income increased 6% year-on-year to INR 2,767 crore during the quarter. Operating profit rose 7% year-on-year to INR 5,855 crore, while operating expenses increased 3% year-on-year to INR 5,137 crore.

The bank’s provisions declined sharply to INR 516 crore during Q4FY26 compared with INR 909 crore in Q4FY25. Credit cost for the quarter stood at 0.39% against 0.64% a year earlier.

Advances, Deposits and CASA Ratio Improve

The bank reported standalone profit after tax of INR 4,027 crore for Q4FY26, up 13% year-on-year from INR 3,552 crore in Q4FY25 and 17% sequentially from INR 3,446 crore in Q3FY26. For FY26, standalone PAT stood at INR 14,008 crore.

Consolidated PAT for Q4FY26 rose 10% year-on-year to INR 5,423 crore, while FY26 consolidated PAT stood at INR 19,288 crore.

Net advances grew 16% year-on-year to INR 4,96,009 crore as of March 31, 2026. Customer assets increased 14% year-on-year to INR 5,45,716 crore. Total period-end deposits rose 15% year-on-year to INR 5,72,456 crore.

Average total deposits also increased 15% year-on-year to INR 5,38,301 crore during the quarter. The CASA ratio improved to 43.3% as of March 31, 2026, compared with 43% a year earlier. Credit-to-deposit ratio stood at 86.6% against 85.5% in the previous year. Kotak Mahindra Bank stated that its customer base expanded to 5.2 crore as of March 31, 2026.

Asset Quality Metrics Show Improvement

Gross non-performing assets ratio improved to 1.20% as of March 31, 2026, from 1.42% a year earlier. Net NPA ratio declined to 0.25% from 0.31% in March 2025. Slippages for Q4FY26 decreased 32% year-on-year to INR 1,018 crore. Provision coverage ratio improved to 79% from 78% a year earlier.

The bank’s capital adequacy ratio under Basel III stood at 22.4%, while CET1 ratio was reported at 21.3% as of March 31, 2026. The board recommended a dividend of INR 0.65 per equity share for FY26, subject to shareholder approval.

Source: company filing

Key Risks

• Rising competition may pressure lending spreads and profitability margins.
• Asset quality deterioration could increase future provisioning requirements.
• Interest rate volatility may affect net interest margins going forward.
• Regulatory changes in banking sector may impact operational performance.

Summary

Kotak Mahindra Bank reported higher Q4FY26 profit, growth in advances and deposits, and improved asset quality metrics. Standalone PAT increased 13% year-on-year to INR 4,027 crore, while NII rose 8%. Gross NPA ratio improved to 1.20% and provisions declined significantly. Despite the earnings growth, Kotak Mahindra Bank shares traded lower during the May 18, 2026 trading session.

FAQs

Q: What was Kotak Mahindra Bank’s Q4FY26 standalone profit?
A: Kotak Mahindra Bank reported standalone PAT of INR 4,027 crore for Q4FY26, up 13% year-on-year.

Q: How did Kotak Mahindra Bank’s asset quality perform in FY26?
A: Gross NPA ratio improved to 1.20%, while net NPA ratio declined to 0.25% in March 2026.

Q: What was Kotak Mahindra Bank’s deposit growth in Q4FY26?
A: Total period-end deposits increased 15% year-on-year to INR 5,72,456 crore during Q4FY26.