Kotak Mahindra Bank Q4 Profit Rises 13% to ₹4,027 Crore

Kotak Mahindra Bank Q4 earnings: Net profit rises 13% to ₹4,027 crore, net interest income advances 8%

Kotak Mahindra Bank, India’s fourth largest private sector lender by market value, posted a 13% rise in net profit to ₹4,027 crore for the January-March quarter of financial year 2025-26, up from ₹3,552 crore in the same period last year. The profit growth was supported by a significant reduction in provisions for bad loans and better asset quality.

The bank’s provisions for bad loans fell 43% to ₹516 crore compared to ₹909 crore in the corresponding quarter of the previous year.

Net Interest Income and Asset Quality

Net interest income, which reflects the difference between interest earned on loans and interest paid on deposits, increased 8% to ₹7,875 crore in Q4 FY26 from ₹7,284 crore a year earlier. The net interest margin stood at 4.67% for the quarter, down from 4.97% in Q4 FY25.

Kotak Mahindra Bank’s asset quality improved as gross non-performing assets (NPAs) declined to 1.20% of total advances, compared to 1.42% in the same quarter last year. In absolute terms, gross NPAs were ₹6,018 crore, slightly lower than ₹6,134 crore a year ago.

Growth in Advances and Deposits

The bank’s advances rose 16% year-on-year to ₹4,96,009 crore as of March 31, 2026, up from ₹4,26,909 crore at the end of March 2025. Total period-end deposits increased 15% to ₹5,72,456 crore, while average total deposits grew 15% to ₹5,38,301 crore during the quarter.

Average current deposits rose 18% to ₹77,058 crore, and average fixed-rate savings deposits increased 17% to ₹1,22,364 crore compared to the previous year.

Annual Profit Declines Despite Quarterly Gains

Despite the quarterly profit increase, Kotak Mahindra Bank’s net profit for the full financial year 2025-26 declined 15% to ₹14,008 crore.

The bank’s board declared a dividend of 65 paise per share. Shares of Kotak Mahindra Bank closed 0.34% lower at ₹383 on Thursday.