Kotak Mahindra Bank Financial Breakdown: Revenue, Profit & Ratios

Kotak Mahindra Bank, one of India's largest private sector banks by market capitalisation (about ₹4.28 lakh crore as of 23 October 2026), reported a strong September quarter on 24 October 2026. Standalone net profit rose 29% year-on-year to ₹4,212 crore in Q2 FY27, even as margins narrowed on a flood of FCNR(B) deposits. This breakdown tracks the bank's five-year financial trend, its latest quarterly results, balance-sheet strength, key ratios, shareholding and peer comparison.

Business overview

Kotak Mahindra Bank, headquartered in Mumbai, began as a non-banking finance company in 1985 and became a bank in 2003. It runs retail banking, corporate and wholesale banking, treasury, vehicle financing and, through subsidiaries, broking, asset management, life insurance and investment banking. The group reported consolidated total assets of ₹11,24,402 crore as of 30 September 2026.

Q2 FY27 results: profit up 29%, margin down

The quarter ended 30 September 2026 (Q2 FY27) was driven by higher net interest income, 21% growth in fee and services income to ₹2,926 crore, and a 15% fall in provisions. The drag came from margins: net interest margin (NIM) fell to 4.31% from 4.54% a year earlier, because the bank mobilised about ₹55,344 crore of FCNR(B) deposits under the Reserve Bank of India's concessional swap window.

• Standalone net profit: ₹4,212 crore, up 29% YoY from ₹3,253 crore (Q2 FY26) and up 2% QoQ from ₹4,123 crore (Q1 FY27).
• Consolidated net profit: ₹5,645 crore, up 26% YoY from ₹4,468 crore.
• Net interest income (NII): ₹8,459 crore, up 16% YoY from ₹7,311 crore.
• Other income: ₹3,194 crore, up 23% YoY; net total income ₹11,653 crore, up 18% from ₹9,900 crore.
• Operating profit: ₹6,382 crore, up 21% YoY; operating expenses ₹5,271 crore, up 14%.
• Provisions: ₹803 crore, down 15% YoY; annualised credit cost fell to 0.35% from 0.79%.
• H1 FY27: standalone net profit ₹8,335 crore, up 28% from ₹6,535 crore; consolidated net profit ₹11,126 crore, up 24.4%.

Five-year financial trend (standalone)

The table below uses the bank's standalone results. Total income roughly doubled in four years, while profit growth slowed in FY26 after a strong FY25 that included a one-time gain.

*FY25 profit includes an extraordinary gain of ₹3,520 crore; excluding it, FY25 profit was about ₹12,930 crore, which makes FY26's ₹14,008 crore an underlying increase rather than a decline. Consolidated FY26 net profit was ₹19,288 crore.

Growth math: standalone total income grew at roughly 19% CAGR between FY22 and FY26 (₹33,393 crore to ₹67,187 crore), while reported profit grew at about 13% CAGR over the same period.

Profitability and asset quality

• NIM: 4.31% in Q2 FY27 vs 4.54% in Q2 FY26 and 4.53% in Q1 FY27 — still the highest among large private banks.
• Return ratios (Q2 FY27, standalone): return on equity 11.65%, return on assets 1.92%; consolidated ROE for FY26 was 11.39%.
• GNPA: 1.04% at 30 September 2026 vs 1.39% a year earlier and 1.18% in June 2026; gross NPAs ₹6,081 crore vs ₹6,480 crore a year earlier.
• NNPA: 0.24% vs 0.32% a year earlier; net NPAs ₹1,367 crore.
• Slippages: fresh gross slippages fell to ₹1,230 crore from ₹1,629 crore a year earlier; provision coverage ratio about 78%.
• Cost-to-income: about 45.2% in Q2 FY27 on the investor-presentation summary.

Balance sheet strength

• Net advances: ₹5,77,295 crore, up 25% YoY (19% excluding FCNR(B)-backed loans and the portfolio acquired from Kotak Mahindra Investments).
• Total deposits: ₹6,51,491 crore, up 23% YoY (13% excluding FCNR(B) deposits); average total deposits up 19% to ₹6.06 lakh crore.
• CASA ratio: 38.2% vs 42.3% a year earlier — the fall reflects the FCNR(B) term-deposit inflow; excluding FCNR(B) deposits, CASA was 41.8%.
• Customer assets: ₹6,26,801 crore, up 23% YoY.
• Capital adequacy (Basel III): 21.9% at 30 September 2026, with Common Equity Tier 1 of 21.4% — comfortably above regulatory minimums.
• Borrowings: consolidated borrowings rose 48.9% YoY to ₹1,23,120 crore, faster than advances and deposits — a metric to watch.

Segment split

Consolidated segment results for Q2 FY27 show broad-based profit growth, led by retail banking:

On the advances side, retail banking assets grew 22% to ₹2,28,029 crore (home loans and LAP ₹1,57,217 crore; credit cards ₹13,264 crore), institutional banking assets grew 25% to ₹2,87,371 crore (corporate banking ₹1,39,786 crore; SME ₹1,38,700 crore, up 27%), and independent product businesses grew 9% to ₹67,455 crore.

Shareholding pattern (September 2026)

• Promoters: 25.87% (Indian promoters 25.86% per the BSE filing), with no shares pledged.
• Foreign institutional investors: 24.65%.
• Public shareholding: 74.13%, with institutions holding about 63.19%.

Leadership note: the bank announced a leadership transition in October 2026, with executive director Anup Kumar Saha set to take over as managing director and CEO from 1 January, with affluent banking, digital channels and payments in focus.

Peer comparison (Q2 FY27)

Kotak is the smallest of the three by profit but leads on both NIM and asset quality in the quarter. For the larger peers, see our earlier breakdowns: ICICI Bank Financial Breakdown and HDFC Bank Financial Breakdown.

Key risks to watch

• Margin pressure: NIM compression from FCNR(B) deposits may persist until those deposits are deployed or replaced.
• CASA dilution: headline CASA fell to 38.2%; the underlying 41.8% (ex-FCNR(B)) is the cleaner trend to track.
• Borrowing growth: consolidated borrowings up 48.9% YoY outpaced deposit growth.
• Cost growth: operating expenses rose 14% YoY; cost-to-income needs to stay contained for operating leverage.
• Valuation: the stock traded at about ₹430.50 on NSE on 23 October 2026 (post 1:5 split) with a P/E of about 20.7x — richer than some larger peers, so earnings delivery matters.

FAQs

What was Kotak Mahindra Bank's profit in Q2 FY27?
Standalone net profit was ₹4,212 crore, up 29% YoY; consolidated net profit was ₹5,645 crore, up 26% YoY.

Why did Kotak's NIM fall in Q2 FY27?
NIM fell to 4.31% from 4.54% mainly because the bank mobilised about ₹55,344 crore of FCNR(B) deposits under the RBI's concessional swap window, which carry lower spreads until deployed.

What is Kotak Mahindra Bank's GNPA ratio?
1.04% at 30 September 2026, down from 1.39% a year earlier, with net NPA at 0.24%.

How much did Kotak's advances and deposits grow?
Net advances grew 25% YoY to ₹5,77,295 crore and deposits grew 23% to ₹6,51,491 crore; excluding FCNR(B) effects, growth was 19% and 13% respectively.

Who are Kotak Mahindra Bank's promoters?
Promoters held 25.87% as of September 2026, with no shares pledged; FIIs held 24.65%.

Conclusion

Kotak Mahindra Bank's Q2 FY27 was a quality quarter with a margin asterisk: profit grew 29%, asset quality improved to the best GNPA among large private peers, advances and deposits grew over 20%, and capital adequacy of 21.9% leaves ample room for growth. The watch items are NIM recovery as FCNR(B) deposits get deployed, CASA trends, and whether borrowing growth normalises. On the five-year trend, the bank has roughly doubled its income while keeping asset quality and capital in strong shape.

Disclaimer: This article is for educational purposes only and is not investment advice. Figures are sourced from the bank's Q2 FY27 results announcements and financial data portals; standalone figures are used unless stated as consolidated. Please consult a SEBI-registered investment adviser before making investment decisions.