Kotak Mahindra Bank’s Q2FY26 financial highlights reflect robust growth in advances and deposits, stable asset quality, and a slight dip in profitability due to increased provisions.
Key Financial Highlights
- Net Advances: Up 15.8% YoY to ₹4.63 lakh crore, showing strong loan book growth across segments.
- Total Deposits: Increased 14.6% YoY to ₹5.29 lakh crore, underscoring continued traction in resource mobilization.
- CASA Ratio: Improved sequentially and YoY to 42.3%, supporting the bank’s funding stability and margins.
- Profit After Tax (PAT): ₹3,253 crore for Q2FY26, a slight drop from ₹3,344 crore year-over-year due to higher provisions.
- Asset Quality: Maintained, with GNPA and NNPA ratios remaining low, highlighting prudent risk management.
- Deposit Mix: CASA deposits rose 11.2% YoY, reflecting higher growth in low-cost funds.
- Credit-to-Deposit Ratio: Improved to 75.56% from 71.77% a year earlier, reflecting efficient deployment of deposits into loans.
| Metric | Q2 FY26 Value | YoY Growth | Q2 FY25 Value | Trend |
| Net Advances | ₹4,62,688 crore | +16% | ₹3,99,522 crore | Robust Growth |
| Average Total Deposits | ₹5,10,538 crore | +14% | ₹4,46,110 crore | Robust Growth |
| Gross NPA Ratio (GNPA) | 1.39% | -0.10 ppt | 1.49% | Improved |
| Net NPA Ratio (NNPA) | 0.32% | -0.11 ppt | 0.43% | Improved |
Strategic Assessment
Kotak Mahindra Bank’s Q2FY26 performance continues to demonstrate above-industry growth in advances and deposits, a healthy CASA ratio, and resilient asset quality. Margins remained supported by strong low-cost deposit growth, though profit was impacted by conservative provisioning. The outlook remains positive due to the bank’s robust operating momentum and strong liability franchise.
References Used:
- https://www.icicidirect.com/research/equity/trending-news/kotak-mahindra-bank-reports-strong-business-growth-in-q2fy26
- https://www.news18.com/business/banks-q2-business-updates-hdfc-posts-9-loan-growth-kotak-idbi-uco-also-report-healthy-numbers-ws-l-9615042.html
- https://www.tijorifinance.com/company/kotak-mahindra-bank-limited/
- https://economictimes.com/markets/stocks/news/kotak-mahindra-bank-q2-update-avg-deposits-up-14-yoy-avg-net-advances-rise-15/articleshow/124305960.cms
- https://www.perplexity.ai/finance/KOTAKBANK.NS
- https://www.financialexpress.com/business/industry-kotak-mahindra-bank-q2fy26-earnings-preview-3-factors-to-watch-4018218/
- https://investyadnya.in/stock-o-meter/kotak-mahindra-bank
