Kotak Mahindra Bank Q4 Results: Net Profit Surges 13% YoY to ₹4,026 Crore; Asset Quality Strengthens

Kotak Mahindra Bank, one of India’s premier private sector lenders, has reported a robust 13% year-on-year (YoY) increase in its standalone net profit for the fourth quarter ended March 31, 2026, reaching ₹4,026 crore. The bank’s performance was bolstered by healthy credit growth and a significant reduction in bad loan provisions.

Financial Performance Highlights

The bank’s core income showed steady growth, although margins faced slight pressure due to the evolving interest rate environment.

• Net Interest Income (NII): Rose 8% YoY to ₹7,876 crore, compared to ₹7,284 crore in the same period last year.
• Net Interest Margin (NIM): Contracted to 4.67% for Q4 FY26, down from 4.97% in Q4 FY25.
• Provisions: Provisions and contingencies for the quarter fell sharply by 43% YoY to ₹516 crore, significantly aiding the bottom-line growth.

Operational Growth: Deposits and Advances

Kotak Mahindra Bank demonstrated strong momentum in its lending and deposit mobilization segments:

• Total Deposits: Grew 15% YoY to reach ₹5,72,456 crore.
• Net Advances: Jumped 16% to ₹4,96,009 crore as of March 31, 2026.
• CASA Ratio: The Current Account Savings Account (CASA) ratio, which reflects the proportion of low-cost deposits, stood healthy at 43.3%.

Asset Quality and Capital Adequacy

The bank continued its trend of improving asset quality, reporting some of the lowest non-performing asset (NPA) ratios in the industry.

• Gross NPA (GNPA): Declined to 1.20% from 1.42% a year ago.
• Net NPA (NNPA): Improved to 0.25%, down from 0.31% YoY.
• Provision Coverage Ratio (PCR): Stood at a comfortable 79%.
• Capital Adequacy: The bank remains exceptionally well-capitalized with a Capital Adequacy Ratio (CAR) of 22.40% and a CET1 ratio of 21.3%.

Annual Results and Shareholder Rewards

For the full financial year FY26, Kotak Mahindra Bank’s standalone net profit climbed 14.85% to ₹14,007.70 crore. Following this strong annual performance, the Board of Directors has recommended a dividend of ₹0.65 per equity share (face value of Re 1).

Market Reaction: Following the announcement, the bank’s shares on the BSE rose 0.28% to close at ₹382.65.

Disclaimer: This report is based on official financial disclosures and public market data as of May 2, 2026. Investing in the stock market involves risks. Please consult with a certified financial advisor before making investment decisions.